Hotel & Motel Franchising Special Report Released

Hotel & Motel Management has released a special report on hospitality franchising that contains a comprehensive list of hotel chain franchise fees and a couple of good articles on improving franchisor and franchisee communication in that franchise segment.  Check them out here:

Hotel & Motel Management’s 2007 Franchising-Fees Guide (pdf)

Open communication at heart of fair franchising

Franchisees speak up, get results

Here are a few excerpts from “Franchisees speak up…”

Lending open ears to listen to problems is not enough to keep franchisees happy these days. Maintaining a long-standing, push-and-pull relationship with constant contact and feedback is what franchisees are looking for from franchisors—and they are getting it.

Many franchisees continue to speak up regarding fair franchising and the result has been positive, according to those franchisees surveyed. By speaking their minds and sharing their problems and concerns with franchisors, franchisees have essentially thrown their weight around, making many major franchise companies sit up, listen and take action.

“When [franchisee and franchisor] are communicating often, everybody benefits. If you have a real relationship, you can work through anything,” said David Akridge, v.p., Ocean Hospitalities, a hotel operating and development company based in Portsmouth, N.H.

Those interviewed claimed there’s been a paradigm shift in franchisor/franchisee communications.  Franchisees are having a greater say in issues and decisions that affect them.

Bob Morse points out the delicate balance franchisors must maintain:

Bob Morse, managing principal and c.o.o. of Atlanta-based Noble Investment Group, said it is part of the franchisors’ responsibility to care about, listen to and take action that enables franchisee success.

“Even though [franchisors] are the stewards of the brands, they should demonstrate a vested interest in the success of their franchisees,” Morse said.

Some of the contentious issues include renovation costs and initiatives franchisors may require for the good of the brand, but whose costs are borne by individual franchisees.  Other sore spots are territorial restrictions and encroachment.  To work through these contentious issues, many have formed franchisee associations and advisory boards.

While advisory boards have been formed at most major franchise companies, their effectiveness has been in question. But Chase noted those franchisors that New Castle deals with have become more active than they were a number of years ago.

The real test, however, comes with time. Franchisors listening to franchisees and demonstrating that they listened by taking action are two different things. The changes are coming, albeit, slower for some than others.

“Franchisors should be securing feedback to make note of what they should be doing, not just listening and then demanding franchisees do what they have already decided,” said John Shingler, president of the Association of Starwood Franchisees and Owners. “Some brands understand this process, and some brands execute it.”

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