Why is franchising important in the hospitality industry?
Why is franchising important in the hospitality industry? Access to Loyal Customers A well-established brand in hotel franchising comes with a loyal customer base. These customers often seek out their preferred brand while traveling, which means a franchisee will benefit from repeat business.
Is KFC a franchise?
Since then, franchise owners have helped write the history of KFC®, helping us grow into the most popular chicken franchise chain in the world, with more than 24,000 locations. Today, relationships with our franchisees have helped KFC® remain a global industry leader and together our story keeps getting better.
Why would a hotel company choose to franchise its brand?
Another attraction of franchising is the economies of scale it offers leads to cost savings and more cost-effective increased brand recognition. These attractions have led to franchising being used in the hotel sector.
What is the advantages of a hotel franchise?
One of the main advantages of joining a hotel franchise is that you can leverage the brand name, reputation, and loyalty program of an established chain. This can help you attract more guests, increase your occupancy and revenue, and benefit from the marketing and distribution channels of the franchisor.
Why more hotels are owned by franchisees?
In the hotel industry, franchisors possess the intellectual property in the form of the brand name, the marketing power, and the reservation systems sought by the franchisees, and therefore can demand highly favorable terms in exchange for allowing a franchisee to be part of the brand's system.
What are the strengths and weaknesses of franchising?
Then, the advantages of Franchising are explained. These are brand recognition, low risk to failure, easy set up, ready customer portfolio and easy to find financial support. In the third part, the disadvantages of franchising are explained that are strict rules, dependency and high cost.