Building and Maintaining First-Rate Relationships Between Franchisors and Franchisees
By Michael Goldstein President & CEO, Packard Hospitality Group | October 28, 2008
Increasing profits, running an efficient hotel operation and maintaining prominence are common goals associated with the hotel industry. Because the ongoing relationship between a hotel franchisor and franchisee often affects each of these aspects of day-to-day hotel operations, that relationship is particularly important to ensuring continual new business, a positive work environment and ultimately, a profitable hotel.
The Concept of Fair Franchising
In today's hotel industry, it is becoming increasingly more common for franchisors to realize that when their franchisees are successful, their profits increase. That is, in essence, the theory of fair franchising: that both franchisor and franchisee must work together to create a product that will be of benefit to them both.
Fair franchising is most often the result of honest, frequent communication between the franchisor and franchisee. The concepts of fair franchising should be employed as early as the negotiation and development stages, and should last throughout the remainder of the relationship.
With fair franchising, a franchisor should always treat the franchisee respectfully and employ and encourage the highest ethical standards in dealing with all of their franchisees. Franchisees, in return, will utilize brand-provided programs and systems to increase business and brand awareness.
How to Choose a Flag
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