If the idea of owning and operating your own motel or hotel appeals to you, consider pursuing a hotel franchise opportunity. The potential for finding a hotel franchise opportunity that is well suited to your abilities, available capital, and your own personal goals is considerable, as the industry is growing faster than ever before.
Hotel Franchises Are A Challenge To Start
If you are interested in a hotel franchise opportunity that will allow you to buy and operate a name brand hotel that holds worldwide recognition, you will find that the application is extensive. In order to apply for a franchise of most name brand hotels, you will be asked to submit your personal data and your proposed location for the new franchise. You will need to submit whether you will be the sole proprietor of the new hotel franchise, or whether it will be a joint venture, whether several individuals are applying for a franchise together, and whether it is a limited or general partnership. If you will not be the sole proprietor of the proposed hotel franchise, you will need to list the tentative entity management structure. The entity management structure includes information on who will be the officers (president, vice-president, secretary, treasurer, etc.) of the proposed franchise, as well as any general partners, managing partners, or managing members.
In order to apply for a hotel franchise opportunity, you will also be asked to submit a current financial statement. Tax returns are not accepted. If the proposed hotel franchise will be a general partnership, limited partnership, or joint venture, each person must submit a personal finance statement, as well as an entity balance sheet. Business references must be submitted as part of the financial statement. The application for applying for a name brand hotel franchise also requires you to submit a resume detailing your franchising and hotel experience. Potential franchisees are also asked to submit any other type of experience with non-hotel businesses.
Hotel Experience Is Preferred
If the potential franchisee has previous or current experience in operating a hotel, they are asked to submit detailed operational data, including figures showing monthly occupancy figures, gross room receipts, and the average daily rate charged for each month. Potential franchisees are also asked to give a detailed description of their facility, including the number of guest rooms, the year the facility was built, number of floors and parking spaces, number of meeting rooms, and the seating capacity of each meeting room. Potential franchisees are also asked to describe their current food and beverage operations, including whether continental breakfast is served, what type (if any) of on-site beverage or food outlets are available, and whether beverage or food outlets are available near the premises. The franchising hotel company will also want to know what types of recreational facilities (pool, spa, exercise rooms, hot-tubs, etc.) are available on-site.
The cost for opening up your hotel franchise can vary widely depending on the size and type of hotel. After completing the application for a franchise, you will be contacted by a representative of the hotel franchise to set up an interview if you are deemed a potential franchisee. You will also be contacted by a sales representative to discuss your options regarding what type of hotel franchise suits your personal financial profile.