Hunting Lease Network Franchise in 2024: Costs, Fee & FDD
Discover whether the Hunting Lease Network franchise is the right investment for you. From initial costs and training to market demand and potential earnings, this analysis dives into key insights to guide your decision.
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The Hunting Lease Network (HLN) connects hunters with landowners looking to lease their land for recreational hunting. Founded by a group of hunting and real estate enthusiasts, HLN has built a strong reputation in the industry, offering a well-managed platform for land leasing. This franchise allows landowners to generate passive income while providing hunters with exclusive access to quality hunting grounds.
HLN’s main service is facilitating hunting leases, managing everything from listing and marketing to contracts and insurance. Hunters looking for private, managed spaces and landowners eager for income represent HLN’s primary market. Franchisees benefit from HLN’s established customer base and the additional services they offer, like property assessments and land improvement consultations.
With franchises across the U.S. and hundreds of leases nationwide, HLN serves thousands of hunters annually. Franchisees are fully supported through extensive training, covering legal compliance, customer service, and lease management, ensuring they have the tools to succeed in this niche market.
Hunting Lease Network Franchise Insights
- Hunting Lease Network was founded in 2004 and started franchising the same year, making it a well-established player with nearly two decades in the land leasing industry.
- With hundreds of leases managed across the U.S., HLN offers franchisees access to a well-established market of thousands of hunters, creating a dependable revenue stream from a growing customer base.
- Currently, there are 15 total U.S. locations, with 14 being franchised units and 1 corporate unit, indicating a solid foundation and franchisee involvement.
- HLN’s structured insurance and liability program significantly reduces risks for landowners and franchisees, covering key liability concerns often cited by those hesitant to lease land for hunting.
Hunting Lease Network Franchise Key indicators
Growth YOY (%)
–12%
vs industry 4%
Total U.S. Franchised Units
14
3-Year Failure Rate
13%
vs industry 5%
How much does it cost to open a Hunting Lease Network franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Hunting Lease Network franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Hunting Lease Network franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Hunting Lease Network below from the most recent Item 7 below:
Type of Expenditure | Minimum Investment | Maximum Investment |
---|---|---|
Initial Franchise Fee | $15,000 | $15,000 |
Travel and Living | $0 | $1,500 |
Initial Training Fees and Travel and Living Expenses While Training | $500 | $3,000 |
Real Estate and Improvements | $0 | $1,000 |
Equipment, Software, and Supplies | $3,000 | $5,000 |
Signage | $0 | $500 |
Insurance | $1,500 | $3,500 |
Miscellaneous Opening Costs | $500 | $1,000 |
Advertising and Marketing & Promotional Materials | $2,000 | $5,000 |
Additional Funds – 3 months | $2,500 | $7,000 |
Total Estimated Initial Investment | $25,000 | $42,500 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Hunting Lease Network franchise, the required capital involves both the initial investment costs and a net worth requirement set by Hunting Lease Network. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $25,000 to $42,500. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets For franchises in this investment range, franchisors often look for liquid assets between $10,000 and $20,000 to ensure the franchisee can cover initial expenses and have some cash reserve. (This is an estimate based on industry standards.)
- Net Worth Although specific net worth requirements for Hunting Lease Network aren’t disclosed, similar franchises often require a minimum net worth of around $50,000 to $100,000. This is to assure the franchisor that the franchisee has the financial stability to sustain operations during the initial growth period. (Again, this is an industry-based estimate.)
How much does a Hunting Lease Network franchise owner make?
Calculating the salary of a Hunting Lease Network franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Hunting Lease Network franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Hunting Lease Network Revenue & Gross Sales
Hunting Lease Network does not disclose financial performance data in Item 19 of its Franchise Disclosure Document, so median gross sales figures are not publicly available. This lack of disclosure is common among niche franchises and means that prospective franchisees may need to rely on individual franchisee testimonials, industry research, or direct discussions with the franchisor to gauge performance. Generally, franchises in this sector can vary significantly in revenue based on location, lease demand, and local hunting interest, which can all impact gross sales potential.
Which key factors impact the average revenue performance of Hunting Lease Network franchisees?
The performance of U.S. franchisee median gross sales for Hunting Lease Network likely depends on several factors. First, hunting demand and interest in recreational outdoor activities have surged recently, especially as more people seek socially distanced and nature-based experiences, which could drive lease demand and revenue. Additionally, economic factors such as rising inflation may have impacted consumers’ discretionary spending, influencing the affordability of hunting leases. Weather patterns, particularly in regions with high hunting activity, could also affect sales, as extreme weather can reduce hunting seasons. Finally, regional competition, effective marketing, and the availability of attractive hunting land all play significant roles in sales performance, as franchisees who secure highly desirable locations and engage local hunting communities may see higher revenues year-over-year.
Hunting Lease Network Franchise Operational Costs
Operational costs for a franchise like Hunting Lease Network are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring smooth operations. For a Hunting Lease Network franchise, operational costs include:
- Property inspections and assessments Regular evaluations to maintain safety and quality of leased land.
- Insurance Liability coverage for leased properties to manage risk.
- Marketing expenses Targeted marketing to attract landowners and hunters, especially in rural or niche markets.
- Administrative costs Managing contracts, handling customer inquiries, and ensuring compliance with local hunting regulations.
Careful planning and budgeting for these operational costs are crucial for the financial health and success of your Hunting Lease Network franchise.
Hunting Lease Network Franchise Fees
The Hunting Lease Network franchise includes several ongoing fees that franchisees should be aware of. These fees are essential for covering operational aspects like royalties.
- Royalty Fee 5% of royalty sales, payable upon HLN’s receipt of revenue.
There might be additional fees associated with other operational or support services, depending on specific franchisee needs and market conditions.
Hunting Lease Network Franchise Earnings
Hunting Lease Network does not disclose median gross sales or specific earnings figures in its Franchise Disclosure Document, making it challenging to provide exact estimates of franchise earnings. Generally, for a franchise in this niche market, earnings can vary significantly based on the number of leases managed, property locations, and local demand for hunting activities.
For an owner-operator, profitability will likely depend on securing high-quality hunting leases and effectively marketing them to a dedicated customer base. Since ongoing operational costs, like liability insurance and property assessments, are relatively manageable, owner-operators who actively engage in building relationships with landowners and hunters may have better earning potential. However, prospective franchisees should reach out to existing franchisees or the franchisor to gain clearer insights into typical financial performance.
How to Open a Hunting Lease Network Franchise
Becoming a Hunting Lease Network franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Hunting Lease Network franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Application and Evaluation If you’re interested in moving forward, you’ll complete an application to assess your financial qualifications and background. The franchisor may conduct interviews to understand your alignment with the brand’s mission and values.
- Discovery Day Many franchises invite potential franchisees to a Discovery Day, where you can meet the leadership team, learn more about operations, and get an in-depth look at the franchise model. This experience helps determine mutual fit.
- Franchise Agreement If both parties decide to move forward, you’ll sign the franchise agreement and pay the initial franchise fee, securing your rights to operate under the Hunting Lease Network brand.
- Training and Preparation The franchisor will provide a comprehensive training program covering lease management, customer service, marketing, and operational guidelines. You’ll also prepare any required business infrastructure and complete necessary local registrations or permits.
- Launch and Marketing After training, you’re ready to start operations. The franchisor may support your initial marketing efforts to attract landowners and hunters, helping you establish a presence in your territory.
Pros & Cons
Pros
Low Initial Investment: With a total investment range of $25,000 to $42,500, the entry cost is relatively low compared to many other franchises.
Growing Outdoor Recreation Market: The demand for outdoor and nature-based activities has increased, creating strong potential for hunting lease interest.
Simple Operational Model: Once leases are secured, operations focus primarily on management and marketing, which can reduce the complexity of day-to-day operations.
Niche Market with Dedicated Customer Base: Hunters represent a passionate market willing to pay for exclusive access to quality hunting grounds.
Cons
Income Variability: Earnings may fluctuate based on local demand, seasonality, and property availability, leading to variable income for franchisees.
Geographical Limitations: Success may be limited to areas where hunting is popular, which could restrict growth potential in certain regions.
Marketing Reliance: Attracting landowners and hunters may require consistent, targeted marketing efforts, which could increase operational costs.
Insurance Costs: Liability insurance fees, especially per-acre charges, can add up depending on the size of the leased land, impacting profitability.