Advantages and Disadvantages of Franchising
Drawbacks to the franchisee
Central reservations generally produce between 17 and 26% of reservations
Benefits to the Franchisee
Centralized reservation system
Drawbacks to the Franchise Company
Difficulty in maintaining control of standards
Drawbacks to the franchisee
Franchisees must conform to the franchisor's agreement
Drawbacks to the franchisee
Franchisees must maintain all standards set by the franchisor
Drawbacks to the franchisee
Franchisees must pay high fees both to join and ongoing
Benefits to the Franchisee
Participation in volume discounts for purchasing furnishings, fixtures, and equipment
Drawbacks to the Franchise Company
The need to be very careful in the selection of franchisees
Benefits to the Franchise Company
Up-front fees
Benefits to the Franchisee
A set of plans and specifications from which to build
Benefits to the Franchise Company
Increased market share and recognition
Benefits to the Franchisee
Listing in the franchisors directory
Benefits to the Franchisee
Low fee percentage charged by credit card companies
Benefits to the Franchisee
National advertising
