How To Buy A Hotel Franchise
Business owners interested in franchising hotels have several options, including starting a new franchise or branding a current hotel as part of a regional, national or international franchise. Buying a hotel franchise means following a series of basic steps, regardless of the corporation offering the franchise.
how to buy a hotel franchise
Meet with a lender to prequalify for a business franchise loan. You'll need to bring your financial records, including federal tax documents, bank statements and proof of income, to discuss the type of loans available. Explain that you are interested in buying a hotel franchise and what type of hotel you are interested in.
Brainstorm the type of hotel that interests you and matches your skills and experience. There are numerous hotel types, from high-end luxury to moderately priced to budget. They come in many sizes as well. Some feature hundreds of guests rooms, full-service dining and lounge facilities and thousands of square feet of meeting rooms. Others might have only a couple of dozen guest rooms and a snack machine in the check-in area. Some hotels cater to tourists, while others cater to business travelers. Decide what works best for you. After that, decide where you might want to locate your hotel franchise. For example, if you are interested in a hotel that caters to business travelers, you might want to look at a location near an office park or commercial district.
Conduct research, on the Web and through hotel trade journals, on hotel franchise opportunities. Note the ones that best match your skills, experience and interests. Alternatively, you can contact a commercial real estate agent or broker to review franchised hotels already on the market.
Evaluate the hotel franchise offerings. Contact the hotel's corporate management about specific franchises for sale, or franchise-branding opportunities. Find the appropriate contact representative on the hotels' franchise websites to obtain an email address, fax, telephone number and street address to request franchise portfolios.
Request franchise company questionnaires for your franchise selections. These questionnaires typically ask you to submit contact information, your proposed hotel location, and details about your ideal hotel operation. You must also provide a narrative of your goals, details of your development and management experience, and your professional memberships and awards. If you want to convert a current hotel to a brand-name franchise, you must provide specific information about your hotel's operation and location.
Obtain franchise disclosures from the hotel corporations that interest you. Federal law requires that the new franchisee have a 14-day disclosure examination period before signing a franchise purchase agreement or depositing any money with the corporation. Some states also require separate franchise disclosure documents for franchise opportunities within state boundaries. Franchised hotels currently on the market must also complete any state-mandated real estate disclosure. [Fact checking: #3 - #7]
Hire a marketing professional with experience in hotel franchising to review the information included as part of the disclosure information. The document lists current franchises and any corporate franchise failures. Ask the professional to also examine the marketing information for accuracy or contract for a new market analysis to ensure the local region has potential for a successful hotel operation.
Meet with the hotel's corporate representative to draw up a franchise agreement. The agreement should meet your requirements for hotel type and geographic location. Draw up a mutually acceptable agreement for franchise branding, if you currently own a hotel.
A collection of distinctive independent hotels, Trademark Collection by Wyndham celebrates the individuality of each of its properties and enables guests to experience every destination on their own terms.
Do you want to own a profitable hotel business without starting from scratch? If YES, here are 20 sure tips on how to buy a hotel franchise with no money down. It has been estimated that for more than 40 years now, franchising has been the most popular method entrepreneurs use to obtain hotel ownership. Hotel franchising enables new hotel owners to attain instant identity so that they can start attracting customers even from the first day of starting the business.
In the united states, more than 70% of all hotels are affiliated with one chain or the other, with less than 30% being independent. With these statistics, it is then obvious that being part of a group of hotels that share a recognized brand and provide services like a central reservation system, marketing, and defined operational procedures, might mean the difference between financial success and failure. If that were not true, then a lot of entrepreneurs would not be jumping on the bandwagon.
If you have decided to purchase a hotel franchise, you would know that the process is indeed very straightforward most of the time. Most entrepreneurs who can afford it often buy the franchise of a reputable hotel chain because they offer very safe investments as well as turnkey operations with thoroughly duplicable systems.
To buy into a hotel franchise, you will need the help of a business broker, an attorney, an accountant, and other advisors. You also must thoroughly vet every franchise contract you want to go into and negotiate the details to develop an agreement that offers you the best chance at fast, profitable success.
Do not forget to negotiate every offer you get as franchisors most times are willing to shift grounds on this issue or that just to make sure that you invest with them. Buying a hotel franchise means following a series of basic steps regardless of the corporation offering the franchise. These are the steps you would typically follow if you want to own a hotel franchise.
If you wish to own a hotel franchise, the very first thing you have to do is to analyze yourself to see if you qualify. You must have to review your personal records to determine your financial worth and the amount of available cash you have to invest in hotel business. You equally have to check your credit score to determine if you qualify for a business loan.
Running a hotel requires certain skills without which you may not do well in the business. You need to make a list of the skills, training, and experience you have in this line of business. Note how these skills relate to the ownership, management, and operations of a hotel franchise.
If you feel that something is lacking, you may have to make up for it through additional training, but you have to, first of all, ensure that that training would not be part of your franchise offering so that you do not waste time and resources.
They are different types of hotels demanding various skills and financial requirements. Before you proceed further, you have to know the type of hotel that interests you and matches your skills and experience. Are you able to handle a high-end luxury or moderately priced to a budget hotel, or something in-between?
Some hotels feature hundreds of guest rooms, full-service dining and lounge facilities, and thousands of square feet of meeting rooms, while others might have only a couple of dozen guest rooms and a snack machine in the check-in area.
Some hotels cater to tourists, while others cater to business travelers. Decide what works best for you. After that, decide where you might want to locate your hotel franchise. For example, if you are interested in a hotel that caters to business travelers, you might want to look at a location near an office park or commercial district.
After you have made sure that your records are in order, and that you qualify to be given a business loan, you now have to select and approach a lender. For the meeting, you have to bring along your financial records, including your federal tax documents, bank statements, and proof of income, to discuss the type of loans available to you. You also have to explain to your lender that you want to buy a hotel franchise and the type of hotel you are interested in.
Having known the type of franchise hotel you want to buy into, it is now time to thoroughly research the industry. You need to go through hotel trade journals and information on the website. You equally have to research the type of hotel that offers franchises and note the ones that best match your skills, experience, and interests. Alternatively, you can contact a commercial real estate agent or broker, or franchise expert to review franchised hotels already on the market on your behalf.
You then need to go further to request franchise company questionnaires for your franchise selections. These questionnaires typically ask you to submit contact information, your proposed hotel location, and details about your ideal hotel operation.
You can now go ahead to obtain franchise disclosure documents from the hotel corporations that interest you. Federal law requires that the new franchisee have a 14-day disclosure examination period before signing a franchise purchase agreement or depositing any money with the corporation.
Some states also require separate franchise disclosure documents for franchise opportunities within state boundaries. Examine the Franchise Disclosure Document to learn about the details of the franchise you are considering investing in. The document contains operating and training manuals as well as financial statements from the franchise that would help you figure out how to run the hotel.
The actual franchise or royalty fee is only part of the cost of becoming part of a hotel chain. You will probably also be charged an initial fee for joining the chain, an annual cost of your reservations, various marketing, and frequent guest programs, and a liquidated damage fee should you want to terminate the affiliation before the term ends. When you compare the cost of one franchise with another, be sure to include all the expenses that will be incurred over the entire life of the agreement. All these would help you decide whether to proceed or back out. 041b061a72