RV Park/Campground Operator’s Manual
Chapter 2
Buying Or Building – Making The Right Decision
Types of RV Parks/Campgrounds / enroute/transient, destination
To Buy or Build
Other Options / management, franchise, condominium & bare land strata, specialty
Professional Services / how do they charge, what to consider
Overview
In the first chapter, you assessed whether you had the knowledge and attributes to own and
operate your own RV park/campground. The next step is to research the merits of either
purchasing an existing RV park/campground or developing a new one. Following are some
questions to ask:
1. What type of RV park/campground do you want to operate – enroute, destination, wilderness,
resort etc.?
2. What is the competition factor in the area you are considering?
3. What management structure do you want, and should you operate as part of a franchise or
remain independent?
4. How will you finance the operation?
5. What is your expected return on investment?
6. What expert help will you need?
7. What are your plans for the future of the business – seasonal sites, permanent rentals, winter
campers, cabins, etc.?
Once you have answered these questions you should be able to assess the financial viability of an
RV park/campground operation.
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Useful tip
Determining the economic feasibility of your RV park/
campground is a key step before making any commitments.
Economic feasibility means whether or not you will make a
profit on your investment over time. Consider hiring a
consultant to perform a feasibility study before making a
purchase. Chapters 3 to 6 discuss the elements of a feasibility
study.
Types of RV Parks/Campgrounds
Generally speaking there are two types of RV parks/campgrounds – enroute/transient and
destination. The type of RV park/campground can most often be determined by the location and
the facilities in the area as well as those you plan to offer. The enroute RV park/campground
primarily serves the overnight visitor and the destination RV park/campground attracts visitors
who may stay for several days, weeks, or for the full season.
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Enroute/Transient
RV park/campground
September 2008
Destination RV Park/Campground
This type of RV park/campground caters to
campers who are looking for a place to stop
overnight while touring the area, or just
passing through.
A destination RV park/campground is
generally located in a resort or urban area. It
is a place where campers go to enjoy the
amenities and facilities provided in a holiday
atmosphere both within the park and close
by.
An enroute RV park/campground should be
located on, or near a main highway with easy
off and on access – but not so close that
traffic noise will be disturbing.
Attributes of a
destination park
Attributes of an
enroute RV park/campground
 Individual campsites are often smaller in
area than those provided at a destination
site however, not so small that they deny
the camper privacy. Local government
guidelines may also dictate the minimum
size of a campsite.
 Sites should be easy to get in and out of.
They should be designed to allow RV
owners to “level up” the vehicle and
connect it to the utilities easily. Chapter 5
discusses campsite design.
A limited number of facilities and services
are usually provided on-site.
 The campsites in the destination RV
park/campground are generally larger than
those in the enroute RV park/campground,
providing campers with sufficient space to
not only set up their RV but also be able to
relax and “live” in the outdoors without
crowding their neighbour.
 Many destination parks are known as RV
resorts. The park provides some or all of
the activities and services on-site. These
could include both passive and active
activities such as:
swimming pool
games room
arts and crafts
snack bar
trails
docks/boating
fishing
canoeing
convenience store organized activities
shuffleboard
Some RV parks/campgrounds combine the best aspects of both types of RV park/campgrounds,
catering to the overnight camper and offering amenities for those staying longer.
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Be flexible
The prospective RV park/campground operator should be flexible in encouraging guests to
stay longer than one or two nights.
There are many tastes in camping and holiday choices, and although an RV park/campground
could be on a major tourist route and classified as “enroute”, the region around it could be
highly attractive, encouraging longer-term stays and a base from which to explore the area.
To Buy or Build
The first step in deciding whether to build your own RV park/campground or purchase an
existing one is research. It is important to determine the type of RV park/campgrounds that
already operate in the desired area and what their occupancy rates are. Can the area justify more
campsites and what existing long-term development plans are in place.
Research will provide information into the community, attractions and overall business
opportunities in the chosen location.
Things to consider
 Look into the occupancy and turn-away rates of existing RV park/campgrounds. If they are
unable to meet the demands of campers each season, there may be opportunities for new
development.
 Check out the condition of existing RV park/campgrounds. Are their occupancy rates low?
Is it because of poor maintenance? Can this be improved with up-to-date services and
amenities?
 Assess the potential for diversification opportunities. Is there a market for other businesses?
This market may include sightseeing tours, outdoor activities or renting RVs on-site. All of
these can increase your occupancy rate and RV park/campground appeal.
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Conduct research
 What attractions are available to your campers – provincial parks, historical sites, and other
recreational activities?
 Have RV parks and RV park/campgrounds in the area been successful?
 Are RV park/campground operators and tourism services working together?
 Will there be any resistance to new development?
 What regulatory groups will you have to deal with? What will they require of you?
 Are there existing bylaws relating to RV park/campground development or expansion?
 Are there environmental concerns that need to be looked into? Will you require an
environmental assessment?
Other Options
a. management structure
If you have insufficient capital, you must find others interested in investing in the business. This
process may take time, as investors need to be sure of their investment and return. Those
interested will want to see your financial projections.
In return for their financial investment, investors are likely to want a say in how the business is
run. You will have to decide whether to form a proprietorship, a limited partnership or a
corporation.
The type of organization you select will depend on the personal position of those who are
investing and on tax and legal considerations. Talk to your lawyer or accountant about the
arrangement that will suit you best.
b. franchise
Franchises are the largest growing form of small business in Canada. A franchise is basically a
chain with the same name brand and quality of facilities, often similar in style and design. There
are different rules and guidelines for each franchise chain – including the amount of
independence allowed and starting capital required.
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Purchasing a franchise offers several benefits. If the franchiser is reputable, not only will it
provide national advertising and a cooperative reservation system, but it will also include
management and master planning assistance.
Before entering into a franchise agreement, visit several RV park/campgrounds in the franchise
organization to ascertain:
 the current owner’s opinion on the value of the franchise
 if they are receiving full value for the franchise fees
 whether they would sign a franchise agreement again.
Useful tip
The franchise company should be investigated to ensure that it
has a satisfactory credit rating, a good reputation, and is in a
sound financial position.
Ask for information on how many of its franchises have been
unsuccessful and why.
Specific information to ask the franchise company
 What does the franchise charge and what would you get for your money? Have your lawyer
review the contract.
 What is included in the franchise fee?
 What does the down payment cover, and what does it not?
 Is the cost of buildings and equipment you would have to buy from the franchiser reasonable,
and are they well designed and soundly constructed?
 What percentage of yearly sales is to be paid to the franchiser and what services are provided in
return?
 What is the size of your franchise territory that is guaranteed free from competition?
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Advantages and disadvantages of owning a franchised RV park.
Advantages of a franchise
 Management, financial advice and
assistance.
Disadvantages of a franchise
 It costs money to belong to a franchise.
 Possible uniform pricing policies.
 National and international recognition.
 Financing may be easier to obtain and at
better terms.
 Strict guidelines for start up and operation
remove some freedom of decision-making.
 Loss of individuality and creativity.
 Tested and standardized designs help to
reduce costs.
 Recognition of name by travelers will
improve occupancies.
 Uniform operating systems.
 Advertising support.
 Centralized purchasing and service
facilities offer quality at reduced cost to
operator.
Although the advantages seem to outweigh
the disadvantages, it is a matter of personal
preference. Your decision to purchase a
franchise should reflect your goals and
reasons for entering the RV park/ RV
park/campground industry.
 Established referral system to maximize
occupancy.
Franchises available in Canada
 KOA (Kampgrounds of America, Inc.) http://ownakoa.com/ownakoa/build.htm
 Yogi Bear’s Jellystone Park Camp-Resorts System www.leisuresystemsinc.com
Franchise options
Joining a franchise can be done three different ways.
1. You can purchase an existing franchise. Contact the licensing department of the particular
franchise.
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2. Choose a franchise and build an RV park from the ground up. This option involves locating
in an area that does not have an existing park within the franchise brand.
3. Convert an existing park into a franchise. Make sure the park is not located in the same area
as another similar franchise RV park/campground.
Consider your options
Franchises don’t want you to fail. Generally a franchise will provide its operators with
training, coaching, manuals, standardized forms, signage, national marketing plans and
successful operating strategies.
However, the money saved by not joining a franchise could be used to hire a professional to
assist in developing these business components. This allows the park to be designed to fit in
with the region’s attributes and owner’s desires.
c. condominium, strata, bare land strata
The condominium or strata RV park/campground operates in a similar way to a condominium
apartment.
An individual may purchase a campsite for a specified sum and place his/her recreation vehicle
on the site for occupancy during vacation, over weekends, or as specified on the agreement of
sale.
The campsite owner may wish to authorize the RV park/campground owner to rent the site and
RV equipment for those periods when he or she will not be occupying it, paying a part of the
rental proceeds to the management for this service.
The campsite owner may chose to rent the site only and not the RV. In this case, the camper
may authorize management to remove the RV to storage until he or she returns. The rental fee is
often split with the RV park/campground owner for this service.
The advantage to RVers is the protection and availability of their own vacation spot to use at any
time. If the RV park/campground is well managed and desirable, the RV park/campground
owner can derive revenue from the sale and resale of such property.
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Advantages of a
condominium
RV park/campground
 Allows for rapid expansion or
establishment of a property at a relatively
low capital investment.
 The developer can build to optimum
market size and style rather than being
limited by available capital.
 Lowers risk factor by spreading it among
several investors.
September 2008
Disadvantages of a
condominium
RV park/campground
 Lower level of profit because it must be
shared with site owners.
 Lesser degree of control over future
expansion or renovations because of
involvement of site owners.
 Loss of marketability of property if owners
choose to use their RV sites during peak
season.
 Capital investment recouped relatively
quickly from profit on sale of sites.
 Future expansion not limited by having to
re-finance a large mortgage.
d. specialty RV park/campgrounds
Some RV parks are designed to cater to specific markets. Two examples are:
1. Barrier free parks which are designed for people with disabilities where they and their
families can enjoy camping in an accessible facility.
2. Religious RV park/campgrounds are targeted towards people of the same faith.
Now what?
You have decided on the type of RV park or RV park/campground you want, so now it’s time to
develop your business plan. Investigate your financing options and potential return on
investment. It may be in your best interest to hire the services of professionals to help you
achieve your goals.
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Professional Services
In planning for and operating your RV park/campground you are likely to require the services of
one or more professionals to ensure that the plans are developed in accordance with city or
regional by-laws and provincial regulations.
Your first step is acquiring legal and financial help. You may also require the advice of
professionals skilled in design, RV park/campground layout and service requirements.
Many of the services overlap – for instance the lawyer, accountant, and feasibility consultant all
provide business advice; the architect, landscape architect and engineer all provide planning and
design services. They often work in teams, so that each aspect is adequately covered.
It pays to investigate a number of firms before hiring one. Not all are equally skilled in the RV
park business.
a. solicitor
A solicitor (or lawyer) provides a range of comprehensive legal services.
Services include title searches, advice on by-laws, easements and access, completing property
purchase arrangements, advising on mortgages and providing legal protection, insurance
counsel and advising on investment and types of management or business operations.
Most lawyers also have excellent knowledge of real estate and contracting procedures.
b. accountant
An accountant provides financial and investment advice. The accountant helps establish
budgets and capital projections, sets up and reviews financial statements, evaluates your
financial status, establishes a fiscal year end, and helps in the preparation of income tax
returns.
In addition, an accountant can advise on which expenses can be charged to your operation,
how to realize tax savings, and run your business efficiently.
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c. economic feasibility consultant
Certain consultants, generally trained in economics and planning, can do feasibility studies for
recreation ventures.
They will assess the many roles involved in an RV park/campground operation and provide a
reasonable indication of the probable success of the business.
d. architect
An architect can often provide master planning and facility design services, as well as
coordinate other design consultants.
Architects give advice on zoning, contracting procedures and prepare contract documents,
including working drawings, specifications and instructions to bidders.
The architect can aid in the selection of a contractor and will assume the responsibility of site
supervision, ensuring that the job is designed and built according to specification.
e. landscape architect
Landscape architects (not to be confused with landscape gardeners) can usually provide master
planning services and are skilled in landscape design, soil conditions, suitability of natural
areas and use of vegetation for screening, windbreaks and other functions.
A landscape architect that has a thorough knowledge of the natural resources in the area, and is
experienced in campsite layout is preferable.
f. engineer
There is a range of engineering services available. Civil and structural engineers are usually
called upon to give advice on structural design and ensure that sound construction procedure is
followed.
Abutments, retaining walls and permanent dockage require engineering advice, as do
roadways. Your architect may consult with an engineer regarding framing and acceptable
loads in a building.
Sanitary engineers specialize in water supply and waste disposal systems, and particular
problems encountered with sanitation.
Many engineering firms have planning services available and can provide master plan layouts.
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g. graphic designer
Graphic designers prepare recommendations for signage, brochures, stationery, etc. and can
assist you with your web site.
If financially viable, a team of consultants is the preferred option, but if this is too expensive you
will have to do the legwork yourself and call in a specialist at critical stages.
Try approaching government, banks and other financial organizations, supply companies, local
industry and trade associations for assistance. They should be able to provide the information
you need and direct you to those consultants who have worked in the RV park/campground
industry.
Other things to consider
before hiring a consulting company
 Who will be assigned to the job?
 How available will they be to you?
 What exactly will you get for the money paid?
 Can the firm offer follow-up help, if needed?
a. how do professionals charge for their services?
Business consultants charge by the hour, or a fixed fee negotiated in advance. Design fees are
based either on a standard percentage of construction, or an hourly charge for time. It is wise to
establish a maximum price for the work before it begins.
b. what should you consider when hiring a professional?
First and foremost, you should prepare a document outlining the scope and purpose of the
assignment. Once you have established your purpose, find an expert in the field for professional
help.
You can find a professional by word-of-mouth, through friends, by contacting the Institute of
Management Consultants, local Bar Association, Chartered Accountants Society, Architectural
Institute of British Columbia, and others, for a referral.
You should obtain at least three proposals before making an informed decision on whom to
contract with.
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Useful tip
Most business schools have summer or year round business
consulting programs.
While students generally lack experience, they do work under
the guidance of faculty and their use has several advantages.
a. They save time for the entrepreneur and they have recent
academic experience.
b. They are objective and can bring a fresh point of view to a
problem, and are much cheaper than the conventional
consultant.
To summarize
It is important to review and make decisions on what your
future plans are for the RV park/campground. All businesses
continually evolve but RV parks/campgrounds today are
changing rapidly with the significant increase in the value of
prime land in resort areas and the propensity for the growing
baby-boomer population to own a piece of resort property for
their retirement pleasure.
Do your homework first!
Review
Question 1:
What are the significant differences between a transient and destination RV
park/campground?
Question 2:
What should you consider when deciding whether to buy or build?
Question 3:
What are the advantages and disadvantages of a condominium RV
park/campground?
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