Benefits of franchising

What is a hotel franchise?

A system of permanent relations between a franchiser (hotel chain) and a franchisee (hotel property) based on which all the knowledge, marketing & promotion programs, brand image and success are used in return for mutual satisfaction of interests.
The contractually granted possibility to "copy" a successful hotel business from a company of world recognition and wide expertise.

Franchised or independent hotel? Franchise advantages:

Coherent and clearly defined concept
Functional business strategy
Optimized and measurable financial and promotional results
Business safety and sustainability
Working tools and procedures with a high and guaranteed productivity
Competitive marketing & sales programs
Global distribution & sales systems, already tested and generating additional guest flux to the franchisee

Briefly: affiliation to a successful hotel business.

Franchise adds value to your own business:

International brand name
Optimized quality of hotel services
Compliance with worldwide professional standards and procedures
Training, team building and motivation of the hotel employee team
Benefit of a successful networking experience
Promotion and reservations with national and international coverage
Consultancy for hotel investments / properties, either new or redefined

Franchise tools:

Hotel operations and brand usage standards
Hotel market positioning, sales and operations strategy
Working procedures for every hotel department
Human resources training
Quality safety standards
Worldwide purchasing system
Sales-force and marketing assistance
International sales offices

Secrets and conditions of the franchisee's success:

To be successful in a franchise right from the start, the hotel should:

Integrate efficiently in the franchise network
Adapt to and acknowledge its new professional status
Understand and comply with the particularities and functions of the chosen franchise network

Around 70% of those franchisees who do not respect the franchiser policy generate losses to their own business.

Affiliation is an investment, with important consequences. Previously, the hotel owner must gain and assimilate the knowledge, competences and abilities necessary to guarantee the correct decision.

What to evaluate about a franchise:

Commercial offer and concept
Pre-contract information analysis
The franchise network history
The franchiser financial status and profitability
Franchiser - franchisee relation
Other franchisees' opinions

How to evaluate a hotel franchise:

Based not only on the franchise costs, but especially on the concept, services and return on investment granted for those costs
Calculation formula of the access cost, which is different from the cost of functioning within the network
Franchiser's criteria of choosing the right of access
Negotiation of the right of access and fees
Negotiation of costs for the services and materials provided by the franchiser
Evaluation of publicity (advertising) costs
Variation of tariffs from one franchiser to another

Possibility to copy a successful hotel business from a company of world recognition and wide expertise