Mr. Belmonte

Franchising

Hotel Franchising: 'Well Done' Is Better Than 'Well Said'

By Steven Belmonte, CEO, Vimana Franchise Systems LLC

But some of the less known phrases are the ones that can perhaps teach us the best lessons if we relate them to the world of hotel franchising. In particular, two Ben Franklin quotes come to mind: "Well done is better than well said," and "A countryman [or hotelier for our purposes] between two lawyers is like a fish between two cats."

Think about those two statements for a moment.

Well Done vs. Well Said

As many in the industry know, I am not short on words. I truly enjoy conversing based on 30 years of hotel experience with friends and industry colleagues at brand conferences and other industry events. But success and respect do not come from what you say, but rather from what you do - and more importantly, what you do well.

Over the past 30 years, I've served as an owner/operator, franchisee, franchisor, brand President/CEO, and head of one of the largest hotel management companies. So what . . . so have many other people.

What if I tell you that I built my successful hospitality career with no formal education-starting in this industry as a desk clerk and working my way to President of Ramada, one of the most recognized hotel brands in the industry and a company that doubled in size under my direction? What if I tell you that I've mentored and motivated many employees and colleagues . . . That I've helped hotel owners to improve their franchisor relationships and negotiate solid contracts to ensure success. . .That I've mediated win/win outcomes for owners who were in jeopardy of losing their franchise . . . And that I've received the Humanitas Award for my work with Childreach, which helps to build medical facilities, schools, youth centers and housing in third-world developing countries across the globe.

I'm not stating these accomplishments to toot my own horn but to stress the importance that "Well done is better than well said." Just saying that you are president, or owner, or manager is not impressive in itself. What is impressive is having a positive, measurable outcome as a result of the role you played.

This is most true in the human resources aspect of hospitality. One of the biggest problems that we as an industry face today is hiring good managers or persons in executive positions. Too often we base our hiring practices on an impressive title on a resume. But what looks good on paper is only good if the job was done well - and if there is proven results to back it up.

Franchisor vs. Franchisee

In the world of hotel franchising, "Well done" also bears more weight than "Well said" on both the part of the franchisor and the franchisee.

A hotel franchise can boast to possess the best flag to fly for a particular location and to deliver the best bottom line results to the owner. But actions speak louder than words. What actions are being taken on the part of the franchisor to ensure that their particular brand will draw more guests to the owners' door and deliver a better average daily rate, RevPAR and occupancy? What tools are they providing to owners to ensure that the best possible outcome can be achieved? What specific steps will they take to assist the owner who is struggling to compete in the marketplace? How far will the franchisor go to assist the franchisee who is in violation of their franchise agreement or in jeopardy of losing their franchise altogether?

Likewise, a franchisee or hotel owner can say that he or she has done everything possible to make his/her hotel a success all-the-while blaming low ADR, RevPAR and occupancy on the lack of assistance from the franchisor. But is the owner using all the tools provided by the franchise or are they trying to do things their own way? Is the owner marketing properly? Is he or she using online distribution channels as their competitors are? Is the owner meeting brand standards by taking care of the physical asset?

One of the best ways to ensure that both the franchisor/franchisee IS doing a job well done is to make sure that the franchise agreement was well negotiated or written. Hiring an experienced third party who understands both hospitality and franchising to assist in the negotiations of a franchise agreement is very important. Otherwise, an owner going into a franchise agreement totally blind can find himself/herself in court between two lawyers "like a fish between two cats."

Part of the problem with franchisor/franchisee relationships is that the franchisee doesn't understand the initial process of structuring a franchise agreement. Contracts are often incredibly complex and virtually filled with legal land mines - which are why, up until the past year or so, the typical franchisee had to retain legal counsel to negotiate a fair contract up front or an equitable termination agreement on the back end. And even with a lawyer, there's no guarantee you'll get the best possible agreement-typically, lawyers know the law, not the hotel business. Nor do they know the individual culture that exists at each of the franchise companies.

The solution is to find a company that offers owners and operators franchise-negotiation services at a fraction of the cost-and, frankly, at a fraction of the time-that it normally takes to hire a lawyer to do the job. This expert - especially one who knows hospitality --can negotiate entrance or exit agreements far faster and less expensively than an attorney.

In addition, a negotiations specialist can wrap up the typical project in as little as two weeks-the time it usually takes lawyers just to get you on their calendar. Cost-wise, there's also no comparison.

With true negotiating power in the hands of the owner, he or she is guaranteed to enter into a franchise relationship that is a win-win. The result of a contract "well done" will be a hotel operation that is well run.

Thanks Mr. Franklin for your words of wisdom. I sincerely hope that many franchisors and franchisees will take them to heart.

In conclusion, I leave you with another quotation from Benjamin Franklin that is good for all of us to put into practice:

"The best thing to give to your enemy is forgiveness; to an opponent, tolerance; to a friend, your heart; to your child, a good example; to a father, deference; to your mother, conduct that will make her proud of you; to yourself, respect; to all men, charity."

Vimana Franchise Systems LLC is a hotel franchise company owned by CEO Steve Belmonte, President Neal Jackson and Vice President Cory Jackson Jr. In May 2011, Vimana Franchise Systems launched the Centerstone brand as a three-segment franchise designed to create a fair and cost effective model for the hospitality industry. In November 2011, Key West Inns was re-launched under the Vimana Franchise ownership umbrella as a fun and uniquely themed leisure brand. For more information on Vimana Franchise Systems LLC, contact Steve Belmonte at (407) 654-5540 steve@vimanafs.com. Visit Vimana Franchise Systems online at www.VimanaFS.com. Visit Centerstone online at www.centerstonehotels.com, on Twitter at @Centerstonehtls, or on Facebook at www.facebook.com/Centerstonehotels. Visit Key West Inns online at www.staykeywesthotels.com, on Twitter at @StayKeyWest, or on Facebook at http://www.facebook.com/staykeywest. Mr. Belmonte can be contacted at 407-654-5540 or steve@centerstonehotels.com Extended Bio...

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