In the hotel industry, a business procedure that combines fundamentals of a franchise and a management agreement in the same deal. Hence, manchising, the practice of building or arriving into such business agreements.
The “Manchise” agreement is a new generation management plan that associates the features and profits of the franchise ideal plus the advantages of independent specialist management knowledge. The “Manchise” allows the investors to have greater control of the both the benefit and the business and subsequently total right to the operating profit. The obvious trading benefits of a product franchise allows for instant consumer gratitude of the product features, a valuable advertising plus for a start – up. This strategy is most suitable to skilled investors with management skill and access to the appropriate infrastructure. As this growth cycle continues to bring new product onto the market the requirement for specialist logical advice on the management options and exit strategies is vital.