From the filings
Software purchasing at Magnuson Franchising is controlled at the corporate level, with Chair of the Board Melissa Magnuson and CEO Adnan Malik listed as the key executives in the 2025 FDD. The system mandates the Magnuson Cloud PMS across all 11 franchised lodging units. For a software vendor, the addressable market is small but concentrated, with all units operating under a single, HQ-driven tech mandate.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2025)
15% reference
Franchisor behaviours
14 requirements the franchisor states in this filing, each in its own words; 11 explicit no's; 9 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have the right to access the Approved PMS and/or Magnuson Cloud PMS at all times and we will have the right to collect and retain from the Approved PMS and/or Magnuson Cloud PMS any and all data concerning your Hotel, including guest information, room inventory and reservation information, financial and sales…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within 15 business days after the end of each calendar quarter, you must deliver to us a complete and accurate balance sheet for your Hotel as of quarter-end, and a profit and loss statement and cash flow statement for your Hotel for such quarter and year-to-date.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
If we decide, in our sole judgment, to modify or discontinue the use of any component of the Licensed Brand or Licensed System, you agree, at your expense, to comply with our directions to modify or otherwise discontinue the use of the Licensed Brand or Licensed System, as we direct, within a reasonable time after…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Neither we nor our affiliates collected any amounts from consideration from vendors based on purchases and leases by franchisees in our last fiscal year ended December 31, 2024.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
5Item 8
Collectively, the purchases you obtain according to our specifications or from approved or designated vendors represent approximately 15% to 30% of your total purchases to convert your Incumbent Hotel to a Branded Hotel, and 5% to 10% of your total purchases to operate your Hotel after its conversion.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
To determine whether you and your Hotel are complying with this Agreement and all Brand Standards, we and our designated agents or representatives may at all times, with or without prior notice to you, enter the Premises to inspect, observe or monitor your Hotel or its operations
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may change the Brand Standards from time to time in our sole discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You may operate the Branded Hotel only from the premises of the Incumbent Hotel we approve when you sign the Franchise Agreement, and may use such premises solely for the operation of your Hotel.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
(2) Except as approved by us in writing or specified in the Brand Standards Manual, you may not develop, maintain or authorize any Online Presence that mentions your Hotel, links to any Online Presence associated with the Licensed Brand or Licensed System, or engage in any promotional or similar activities, whether…
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You also agree to participate in and honor the terms of each of our designated guest loyalty, satisfaction and/or other similar programs that are applicable to the Branded Hotels.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Payment will be processed either via ACH or credit card on the invoice due date unless payment has already been made.
Must the franchisee participate in a gift card program?
YesFranchise agreement
issuing and honoring gift cards, gift certificates and similar items, and participating in loyalty programs, revenue enhancement programs, and rate strategies;
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must identify one of your Owners in your Franchise Agreement who is a natural person, to supervise the day-to-day operation of your Hotel on a full-time basis (your “Managing Owner”).
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have the right to access the Approved PMS and/or Magnuson Cloud PMS at all times and we will have the right to collect and retain from the Approved PMS and/or Magnuson Cloud PMS any and all data concerning your Hotel, including guest information, room inventory and reservation information, financial and sales…
Magnuson Franchising operates 11 franchised lodging units across five states—Michigan (3), Texas (2), Florida (1), Ohio (1), and Arkansas (1). The system grew 22.2% year-over-year, adding units from a smaller base, but remains a compact, single-brand network with no multi-unit operators on file. All 11 mapped operators run exactly one location each. For a software vendor, the total addressable market is 11 properties, all under a centralized HQ in Wyoming. There are no company-owned units disclosed in the 2025 FDD, meaning every location is a franchisee—but the tech mandate structure means HQ likely controls the stack.
The royalty rate is 8.0% of gross revenue, and the initial franchise term runs five years. Average unit volume (AUV) is not disclosed. The absence of multi-unit operators and the small unit count means a vendor can cover the entire system with a handful of conversations, but the revenue ceiling per product is inherently limited by scale.
The 2025 FDD Item 1 names two executives: Melissa Magnuson, Chair of the Board, and Adnan Malik, Chief Executive Officer. With no CIO, CTO, or VP of IT listed, software purchasing authority likely rests with these two individuals. In a system this small, the CEO and Chair are typically directly involved in vendor evaluation and approval, especially for a mandated property-management system that touches every unit.
There is no parent company on file; Magnuson Franchising appears independently owned. This simplifies the sales path—no layered corporate approvals from a parent entity—but also means the buyer group is extremely narrow. A vendor pitching complementary software (revenue management, guest experience, housekeeping, or back-office) should expect to engage directly with the CEO or Chair.
The FDD mandates an Approved PMS for all franchisees, and the named system is the Magnuson Cloud PMS. This is the only technology explicitly identified in the filing. No POS, booking engine, CRM, or operational tool is mentioned as mandated or recommended. The mandate language suggests franchisees must use the Magnuson Cloud PMS, giving HQ tight control over the core operational system.
For a vendor, this means the PMS is the system of record, and any integration play must work with or around Magnuson Cloud PMS. The FDD does not disclose whether the PMS is self-developed or licensed from a third party, but the branding implies it is proprietary to the franchisor. Vendors selling adjacent tools should investigate API availability or data-export capabilities of that platform.
Item 8 of the FDD—which typically covers procurement obligations, designated suppliers, and purchasing cooperatives—contains no extract in the available data. This means the formal procurement model is not disclosed. It is unclear whether franchisees must buy from a designated supplier list, an approved supplier program, or have open purchasing discretion beyond the PMS mandate. Vendors should clarify this directly in discovery.
On contract timing, the initial franchise agreement runs five years and auto-renews for one successive five-year term. Either party can prevent renewal by giving notice between 90 and 180 days before expiration. With 11 units and recent growth, some locations are likely approaching renewal windows, which can be natural moments for technology re-evaluation. The franchisor also retains the right to elect not to renew "for any reason," giving HQ significant leverage over franchisees at renewal.
The 2025 Magnuson Franchising FDD is embedded below for full review. Key sections for a software vendor: Item 1 identifies the buying center (Melissa Magnuson, Adnan Malik). Item 11 details the PMS mandate. Item 17 spells out the 5-year term and auto-renewal mechanics that create periodic decision windows. Item 8, if available in the full document, would clarify procurement rules. The unit-count data and operator footprint come from the franchise disclosure exhibits, showing 11 single-unit operators across five states with no multi-unit ownership. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment Magnuson Franchising files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
11 operators run 11 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| MI | 3 |
|---|---|
| TX | 2 |
| FL | 1 |
| OH | 1 |
| AR | 1 |
Ownership
unknown of magnuson company l l c.
Related Lodging brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.