Start a Canopy by Hilton Franchise in 2025

2025 Franchise 500 Rank: #425 Ranked #143 last year

Initial investment: $63.9M - $141.5M

Units as of 2024: 41 32.3% over 3 years

Canopy by Hilton is an upscale hotel franchise introduced and run by the mega Hilton brand. It strives to offer a unique yet modern hotel experience to its guests in picturesque locations across the world. Hilton created this brand after undergoing comprehensive research based on consumer trends and needs in the hospitality industry.

Hilton launched Canopy by Hilton in 2014 to place an emphasis on comfortable spaces and thoughtful locations. It focuses its guest-directed appeal on relaxation and a space to recharge. Canopy by Hilton offers business and leisure travelers a modern space to relax and replenish in well-thought-out locations.

Hilton by Canopy has over a dozen locations in the United States to go along with several located internationally.

Why You May Want to Start a Canopy By Hilton Franchise

If you want to own a modern and chic franchise in the hospitality industry, then Canopy by Hilton may be a good choice. Franchisees are expected to be forward-thinking with the initiative necessary to take on a relatively new concept in the hospitality industry.

Two more traits that a Canopy by Hilton franchisee should have are innovation and sophistication. Hilton seeks to make this new franchise opportunity modern and futuristic as compared to its traditional outlets. A global mindset is also a key feature for a franchisee since this franchise is set to be multinational with locations all over the world, in key destinations.

Canopy by Hilton has been ranked in Entrepreneur's Franchise 500. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

What Might Make a Canopy by Hilton Franchise a Good Choice?

Canopy by Hilton may be a unique investment choice for franchisees thanks to its non-traditional design that's all about guest service and less about transactions. This fun, new concept breaks the tradition of checking in at a hospitality desk and instead uses your smartphone as your hotel room key.

To be part of the Canopy by Hilton team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include royalty, advertising, and potential renewal fees.

How To Open a Canopy by Hilton Franchise

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Canopy by Hilton franchising team questions.

Once you've determined that Canopy by Hilton is a good fit and have completed the necessary steps to open a franchise, the company will offer its support in the form of marketing support which includes social media and email marketing. A franchisee will also receive ongoing support such as field operations, grand opening, online support, on-the-job training, and so on.

Company Overview

About Canopy by Hilton

Industry	Lodging
Related Categories	Hotels & Motels
Founded	2014
Parent Company	Hilton
Leadership	Christopher Nassetta, CEO
Corporate Address	7930 Jones Branch Dr. McLean, VA 22102
Social	Facebook, Twitter, Instagram

Business Overview

Franchising Since	2014 (11 years)
# of employees at HQ	8,397
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	41 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Canopy by Hilton franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$85,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$63,929,990 - $141,542,695
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	Varies
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	23 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Canopy by Hilton has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	9 hours
Classroom Training	115.5-132.5 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No