{"id":22589,"date":"2020-04-08T17:03:59","date_gmt":"2020-04-08T17:03:59","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/hotel-franchise\/"},"modified":"2024-12-23T09:21:59","modified_gmt":"2024-12-23T09:21:59","slug":"hotel-franchise","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/hotel-franchise","title":{"rendered":"Hotel Franchise"},"content":{"rendered":"<p>What is the meaning \/ definition of Hotel Franchise in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>A Franchise is the right to use the brand and the business model of a specific parent company for a prescribed period of time. It is a method for expanding a business and distributing products and services through a licensing relationship.<\/p>\n<p>A <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchisor\">Franchisor<\/a> is a company that \u2018gives\u2019 the license to a third party for the conducting of a business under their trademark. They specify the products and services that should be offered.<\/p>\n<p>A <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/franchisee\">Franchisee<\/a> is a company who \u2018uses\u2019 the license of the franchisor to do business under his trade name, according to terms and conditions of the contract.<\/p>\n<p>In other words it means that the parent Hotel Franchise Company provides permission for the local owner to use the parent company\u2019s name (brand) and products. A franchise can be owned as a corporation, sole proprietorship, limited liability company or other business structure.<\/p>\n<p>In hospitality industry, a Hotel Franchise can be vaguely compared to a chain, since it is a management agreement, that provides certain services (brand, reservation system, support, etc.) in return to follow specific regulations and procedures. In other words the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-brand\">hotel brand<\/a> is shared by other proprietors.<\/p>\n<p>Beneficial is that the Franchisees can brand their <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel\">hotel<\/a> with a well-known and popular brand, while the franchise contract provides them with a powerful set of tools to drive new business. Franchisees operate business for themselves but not by themselves.<\/p>\n<p>The advantages of a Hotel Franchise (for the Franchisees) are:<\/p>\n<ul>\n<li>strong brand portfolio<\/li>\n<li>specific set of tools<\/li>\n<li>strong approach to standards<\/li>\n<li>good reputation<\/li>\n<li>training programmes<\/li>\n<li>consultation and advice service<\/li>\n<li>marketing programmes<\/li>\n<\/ul>\n<p>The benefits for the franchisor, on the other hand, is an alternative to building \u201c\u201dchain stores\/ hotels\u201d\u201d to distribute their products. It avoids the investments and liability of a chain.<\/p>\n<p>The franchisor\u2019s success however depends on the success of the franchisees.<\/p>\n<p>Not only hotels but also many chain restaurants (i.e. McDonalds) and retail stores (i.e. 7-Eleven) are owned as franchises.<\/p>\n<p><strong>See also:<\/strong><\/p>\n<ul>\n<li><a title=\"Hotel Franchise Company\" href=\"\/en\/hotel-franchise\">Hotel Franchise Company<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a href=\"\/en\/glossary\/virtual-hotel-operator-chain\/\"><span style=\"font-weight: 400;\">Virtual <\/span><\/a><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-operator\">Hotel Operator<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-brand\">Hotel Brand<\/a><\/li>\n<li><a href=\"\/en\/glossary\/soft-brand\/\">Soft Hotel Brand<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/independent-hotel\">Independent Hotel<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/chain-hotel\">Chain Hotel<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-chain\">Hotel Chain<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-operator\">Hotel Operator<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms<\/strong><\/p>\n<ul>\n<li>Hotel Franchising<\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-group\">Hotel Group<\/a><\/li>\n<\/ul>\n<p><strong>Antonyms:<\/strong><\/p>\n<ul>\n<li><a href=\"\/en\/glossary\/hotel-chain\/\">Independent Hotel Chain<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Hotel Franchise in  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[39,9],"tags":[],"class_list":["post-22589","post","type-post","status-publish","format-standard","hentry","category-h","category-glossary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - 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