Here is a quick review of the basic pros and cons of buying a hotel franchise. Every investor is different. Depending on who you are, some of the “pros” may actually be “cons” and vice versa. Consider this as a starting point in your evaluation of hotel franchise opportunities.

Starting with the good stuff, let’s look at the advantages:

Start-up risk reduction – you are working with someone who has successfully done this before.

Turnkey operation – Once again, nothing to reinvent the wheel of processes, procedures or acquisitions. Your franchisor has already built the system.

standardized systems – The back-end financial, IT and accounting systems are already in place, so you won’t waste your time implementing reservation systems.

purchasing power – as part of a larger whole, you get the benefit of buying in volume.

Consulting readily available – experience counts and your franchisor has been just around the corner. He asks for all the help he is willing to give.

Marketing – brand image and marketing are already available. You are not chasing single travel reviewers to get your name out there.

financial assistance – Some franchisors are willing to help you finance these high capital projects.

you are your own boss – The glory of that is evident!

Now let’s take a look at the downsides.:

less freedom – You are married to your franchisor – for better or worse!

royalty payment – As a franchisee you pay for the previous supports.

costs – Hotels are businesses with high capital and operating costs.

Lack of support – If your franchisor doesn’t help as you expect, you may be out for the count.

Inflexible Systems – even if you have a better way to manage bookings, you are using your method.

unbalanced contract – all franchise contracts, not just hotels, are biased towards the franchisor.

Dependent on the franchisor – your performance is your performance.

These are all things to keep in mind as you move toward a decision about purchasing a franchise or hotel business.