Mr. Belmonte

Franchising

Integrity is Key to Any Meaningful Franchisor/Franchisee Partnership

By Steven Belmonte, CEO, Vimana Franchise Systems LLC

Not necessarily - especially when your personal performance impacts your business performance. Once you divide your personality and your actions into two or more categories, you deviate from the very definition of the word "character." At its root, one's character is defined by one's integrity - "The quality or state of being complete, unbroken condition, unimpaired, of sound moral principle, uprightness, honesty and sincerity." (Defined by Webster).

Therefore, if your character - which defines who you are - is broken into two or more entities, you no longer have integrity because you are no longer "whole." Without integrity, you don't have much character. Unfortunately, without integrity it is still possible to run a successful business. However, the chance of your being successful is greatly minimized, and while certain people may do business with you, it's most likely out of necessity. When your integrity is low, "people know it."

How many times have you heard a franchisor or franchisee claim to operate with integrity? In the hospitality environment, integrity is achieved by walking the talk and doing for your franchisees, employees or guests what you say you are going to do.

Sounds pretty simple. . . and a good formula for a successful partnership, right? Partnership is achieved by accomplishing goals together and by teaming for the good of all parties. Unfortunately, just as in personal relationships, business partnerships sometimes fail because one of the parties takes his or her eyes off the original goal, or somewhere down the road loses integrity because of a flaw in his or her character (dishonesty perhaps, impaired judgment or in many cases the person "just doesn't care.")

Sink or swim?

In the movie "Titanic," one of the primary reasons the ship was considered unsinkable was because of the way the compartments in its hull were designed. The theory was that flooding in one compartment due to a breach in the hull wouldn't affect other compartments because of the high walls between them. What the ship's designers didn't consider, however, was that if the breach was big enough, water could spill over the walls from one compartment to the other, until the ship sank.

The same theory can be applied to the franchisor/franchisee relationship. If there is breach in the contract by either party, the negative impact on the relationship will begin to spill over from one area of your business into the next until eventually, the partnership crumbles, and the weaker of the two businesses possibly could sink.

How do you avoid such a tragedy? Franchisees looking to assure themselves of a solid, equitable franchise contract must first find a franchise company that is led by hoteliers with character and that is built on the tenet of integrity. They will want to select a franchise based on the company's ability to provide them with the tools necessary to run a successful business, such as knowledgeable senior management, great marketing efforts, field support, an effective franchise board that has a voice in what goes on within the company, along with various other areas of support.

Likewise franchisors must be certain that they are building partnerships with owners who are willing to follow the standards and guidelines set by the franchise company to be successful. If a franchisee has done everything possible to make his or her businesses successful - even requesting the assistance and consultation of the franchisor when the first signs of trouble arise - and the business is still sinking, then it is up to the franchise company to provide equitable franchise termination and exit strategies.

If the mutual goals of the franchisor and franchisee are not being met, then there is cause to terminate the partnership. As long as both parties keep their integrity in check, and maintain their character in the true spirit of hospitality - taking each other's business and financial goals into consideration - then there should be an equitable separation.

The franchisor/franchisee relationship is truly the ultimate in power sharing and character building. In the true spirit of hospitality, we as hoteliers need to look inwardly to see if our character is being defined by our business integrity.

Verbally trashing the franchisor if your business is doing poorly is not the way to seek an equitable resolution or to build your character in the eyes of your fellow hoteliers. Howling at the moon won't put more heads in beds or improve your integrity in the eyes of the franchisor, which most likely is able to help you get back on your feet.

Yes, owners should expect to get the very most - the highest return on investment - from the fees that they pay every month. But recognize that not all franchise companies are the same. Some operate with integrity and some may not. The one's that do will structure a fair franchise agreement that is equitable for both entities. If implemented correctly, there are ways to maximize the benefits provided by the franchise company to help increase guest satisfaction and improve overall asset performance.

True partners can weather any storm. Those who build a business relationship on integrity, looking inwardly at the character behind those building the partnership, will be those who swim up stream, even in the roughest waters.

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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