Hotel Franchise

What is the definition of Hotel Franchise in the hotel industry?

A Franchise is the right to use the brand and the commerce representation of a exact parent company for a prearranged period of time. It is a technique for increasing a business and distributing products and services throughout a licensing association.

A Franchisor is a corporation that ‘gives’ the permit to a third party for the conducting of a trade under their trademark. They stipulate the products and services that should be presented.

A Franchisee is a corporation who ‘uses’ the license of the franchisor to do dealing under his trade name, according to terms and conditions of the agreement.

In hospitality industry, a Hotel Franchise can be indistinctly compared to a sequence, since it is a management conformity, that provides definite services (brand, reservation system, support, etc.) in return to follow specific system and procedures. In other words the hotel brand is shared by other owners.

Beneficial is that the Franchisees can product their hotel with a famous and acknowledged brand, while the franchise contract provides them with a influential set of tools to drive new business. Franchisees function business for themselves but not by themselves.

The benefits of a Hotel Franchise (for the Franchisees) are:

  • strong brand collection
  • precise set of tools
  • tough approach to standards
  • good status
  • training programmes
  • discussion and counsel service
  • advertising programmes