Franchise is a highly significant part of the hospitality industry. It allows independent hotels to take the advantage of the marketing power of established brands and benefit from expanded business opportunities. Usually, when a new hotel is launched in the market, it suffers a definite disadvantage in the form of previously present competition. In such a case, the new hotel would have to spend a lot on promotion and advertisement to get itself known to the customers. However, franchise gives them an instant recognition and customer inflow as they bask under the spotlight of the parent company’s fame. Franchise permits a hotel to use a particular brand name and business model for a specific duration. It is a proven approach to expand a business and distribute products and services via a licensing association. In hospitality industry, franchise could be compared to a chain where a hotel brand is shared by multiple proprietors for a specific duration in return for a fixed fee.
A Franchisor is a parent organization that extends its license to a third party (franchisee) to operate under its brand name. However, while giving the license, the franchisor gives specific instructions on the way services and products could be offered to the customers. If the conditions are not met, then the franchisor has the right to revoke the franchise.
Owing a hotel business is many times more advantageous than pursuing a regular job. Business offers you an opportunity to reach new heights which is impossible to attain in an employment setting. The business helps you to become your own boss where you are answerable to none but yourself. It eliminates restrictions in your growth and makes you the decision-maker and in-charge of your fate. You get the freedom to use your insight and intelligence to take strategic decisions and build an inviting hotel, unlike the job where you are restrained by corporate directives. The hotel business promises great monetary returns where you heap the benefits of your hard work. Business is also a continuous learning process and helps you to explore and expand each aspect of your personality unlike the 9 to 5 job where you get to utilize just a few of your skills. Of course, business is not a bed of roses and you would have to make many sacrifices and compromises. But in the end, there would always be a satisfaction of having built a lasting business that would not only give you a chance to expand and build a chain, but also secure the future of your children with option to step into the established family business.