Hotel Franchising Kansas – Important Dos and Donts

Hotel owners should understand and avoid common mistakes if they want to get the best out of hotel franchising and avoid the pitfalls of it.

Let us start with a few do’s of hotel franchising:

1. Do your homework properly – Deciding a franchise is very important step that could determine which direction your business may go in future – whether uphill or downhill. Do thorough research about the brand or brands that you are considering joining. The internet is a good place to start the research, but don’t limit yourself to just online sources.

Many people make the mistake of selecting a brand randomly on impulse. This could prove to be a costly mistake. Check out the brand’s past history, who is its currently leading team, the credentials of the people running the brand, etc. Take a look at some of the brand’s franchise hotels to see how they seem to be performing, do they seem well-maintained and well-run, do they seem to be profitable and doing good, etc.

If possible, you may even stay for few days in some of the franchisee hotels of the brand. The bottom line is there is no substitute for thorough homework. After all it is a question of the future of your business.

2. Seek Council – This is another important point to remember. Some people make the mistake of trying to find all the information themselves and decide on their own without seeking advice from others. You should try to seek the wise council of other experts and experienced people who are in the same field.

It is also a good idea to take legal advice wherever possible. A franchise contract entails lot of legal details and fine prints which you should be aware of beforehand otherwise you may get into trouble later. There may be many conditions, clauses and other details which are not explained to you by the franchisor but are mentioned in the contract. You may not pay attention to these details during the negotiation period and may miss them completely only to regret later on.

So take legal advice, and also take professional advice of people who have been in the hotel business, specially if they have franchise experience. If possible you may try to speak to some of the franchisee hotel owners of the brand you are considering joining.

3. Negotiate – You need to realize that the franchisor is not doing a favor to you by allowing you to join them. You are both entering into a mutual agreement which should serve and benefit both parties. It should not be a one-way street where only one party benefits tremendously while the other party feels it got a raw deal. Remember you are not at the mercy of the franchisor.

Now is the time to negotiate anything and everything which you feel is not to your liking. Whatever concern or objection you have to any part of the contract agreement, bring it up for discussion before you sign the deal. Many times you may find the brand much more accomodating than you may have initially expected.

Now for some dont’s of hotel franchising:

1. Don’t be hasty – As the saying goes, haste makes waste. Do not rush into finalizing anything and signing the deal until you have done all your research and had discussions, consulted with relevant people, thought over the whole thing deeply and calmly, negotiated the contract terms and conditions with the franchisor, etc.

2. Don’t invest more than you are comfortable – Each person has a comfort level. It is not wise to go beyond your comfort level specially when it comes to investments. Many business owners, in their excitement and over-enthusiasm, go overboard without thinking of the future impact of their decision. They may take on more than they can bite, getting into heavy debts which may take years for them to come out of.

If any brand requires you to spend too much money that is way beyond your means, stop and think whether it is a wise move to go with that brand. Maybe it is not a suitable brand for your budget. There may be other cheaper alternatives which might suit your current situation. Keep your eyes and mind open for better alternatives as well.

3. Don’t be naive – You don’t have to believe everything a brand says about itself. Also just because a brand is popular does not mean you have to throw caution to the wind and trust it blindly. Similarly, just because some hotel has been successful after joining a particular brand does not mean that other hotels may also experience similar success. So be careful and vigilant. Do not let reputations fool you or make you complacent.

Calling hotel owners from any city of Kansas including Wichita, Overland Park, Kansas City, Olathe, Topeka, Lawrence, Shawnee, Manhattan, Lenexa, Salina, Hutchinson, Leavenworth, Leawood, Dodge City, Garden City, Junction City, Emporia, Derby, Prairie Village, etc. Join our brand and reap the amazing benefits.