08 Sep, 2017

Franchising A Hotel

Franchising a hotel Franchising a hotel is a big part of the franchise industry, becoming more and more popular. If you are thinking about starting a hotel franchise, you need to give it careful thought. Hotel franchising is a lot more complicated than other franchises like fast food restaurants. Hotel franchising includes hotels, motels, inns, and other types of lodging. It can be both national and international. If you are considering a hotel franchise, you must do a lot of research and take care to make sure that the hotel franchiser is the right one for you. Their reputation is very important. Hotel franchises tend to be quite expensive to start-up, more so than a fast food restaurant, because of the size of the business. In the beginning, the franchisee must bear a lot of the costs. Reputation becomes especially important at this point because the stakes are so high; the franchisee cannot afford to pick a hotel company which might not have the best reputation. Since a hotel is such a large business compared to many other franchises, it is especially important that the franchisee pays attention to the market they want to open the franchise in and how the industry works. If you are confident in your knowledge of the market and industry, there is a good chance that your franchise will be able to grow without much support needed from the hotel company. Here is a quick review of the basic pros and cons of buying a franchising a hotel. Every investor is different. Depending on whom you are some of the "pros" may really be "cons" and vice versa. Consider this a starting point in your assessment of hotel franchise opportunities. Starting with the good stuff, let's look at the Pros: Reduction of startup risk - you are working with someone who has done this before successfully. Turnkey operation - again no reinventing the wheel on processes, procedures or procurement. Your franchisor has built the system already. Standardized systems - backend accounting, IT and financial systems already in place so you aren't spending your time implementing reservations systems. Buying power - as part of a larger whole, you get the benefit of volume buying. Consulting readily available - experience counts and your franchising a hotel has been around the block. Ask for as much help as they are willing to give. Marketing - the brand image and marketing is out there already. You aren't chasing one-off travel reviewerers to get your name out. Financial assistance - some franchisors are willing to help you with funding these high capital projects. You are your own boss - the glory of that goes without saying!