| With the recent slump in the economy, many | | | | mercy; the two of you are making a mutual |
| entrepreneurs are weighing their options very | | | | agreement, and the agreement needs to be |
| carefully before jumping into a new investment or | | | | agreeable to both parties. Whatever you have a |
| business opportunity, yet the fact that many are | | | | problem or concern with in the agreement, as it is |
| choosing to wait to see what happens to the | | | | drawn up, tell the franchisor what it is and what you |
| economy could give the prospective business owner | | | | want. When you're looking to get into a Wingate by |
| a jump on the competition and the kick-start needed | | | | Wyndham franchise, it is as much in their interest |
| to overcome the struggling economy. One such | | | | that they accommodate you as it is in yours that |
| industry with great potential is hotel and motel | | | | you accommodate them-and they have more leeway |
| franchises. These high capital franchises take quite a | | | | than they let on. |
| bit more to get going than the average small | | | | 5) When Converting an Old Hotel, Inspect it |
| business but the payoff can be exponentially higher | | | | It's a really straightforward recommendation, but if |
| and if you follow some of the following tips, you'll be | | | | you're remodeling an old hotel instead of building a |
| on your way to starting your new hotel or motel | | | | new one, be sure to get every nook and cranny |
| franchise in no time. | | | | inspected. The last thing any franchisee wants is to |
| 1) Stay in the Hotels You're Looking at | | | | spend the money for the perfect business only to |
| If you're in the market to start a hotel, chances are | | | | find that there are structural, sewage, or electrical |
| you have some experience with the hospitality | | | | problems with the facility halfway through the |
| industry and you're at least beginning to become | | | | opening year. Save yourself future headaches by |
| acquainted with the franchisor you're interested in. | | | | being sure the real estate investment is sound. |
| But knowing how a hotel or motel franchise is | | | | 6) Research the Local Competition |
| supposed to run is far different than knowing what a | | | | When it comes to choosing the placement of the |
| specific hotel's daily practices actually look like, so one | | | | hotel franchise you're going to buy, it's important to |
| of the best things you can do is study the business | | | | know all you can about the area you're looking at, |
| from a guest's point of view. If you're curious about | | | | and competition is a big part of that. Even though |
| Hawthorne Suites, get a room for a week at one of | | | | Microtel Inns and Suites is the premium name in |
| their locations and do some first-hand research. You'll | | | | economy hotels, putting your franchise in an area |
| learn more than a pamphlet can ever teach. | | | | overly filled with other economy locations is not the |
| 2) Talk to Other Franchisees | | | | wisest of business tactics. |
| This is a good step for someone starting a franchise | | | | 7) Do Your Homework on Local Development |
| in any industry. Your interest, as a potential Choice | | | | Chances are good that a franchisor is already well |
| Hotels franchisee for example, is not only in how the | | | | aware of what's going on in any area in which they're |
| business treats its guests, but also it's franchisees, | | | | proposing to start a franchise hotel, however, doing |
| and the only way to learn that is to go and talk with | | | | your own research can never hurt. For that reason, |
| men and women who have already walked that road. | | | | when looking at a potential location for your business, |
| Find some nearby franchises and ask to talk to the | | | | make a call to the local government agencies in |
| owners. Ask them about what they like and would | | | | charge of land development and road construction. |
| like to change about the way their franchisor relates | | | | See what future plans are in store for the highways |
| to them, how the purchase process went, and what | | | | and roads of the area, whether there will be more |
| kinds of ongoing support the franchisor still provides. | | | | access to your location or less, and ask about what |
| 3) Seek Wise Council Early in Negotiations | | | | the outlook for residential, commercial, and industrial |
| Experts recommend that a new franchisee never | | | | expansion is. Make sure that in a few years, the |
| even begin to make high capital franchise deals | | | | location will be even more hospitable to your business |
| without finding wise advisors to help influence the | | | | than it is now. |
| decision-making process. There is no shame in getting | | | | Hospitality is an excellent industry that has been with |
| the help of a whole team of seasoned | | | | us for millennia and has proven profitable for millions, |
| businesspeople to help you navigate the negotiation | | | | so starting hotel franchises is certainly a good idea. |
| process with your franchisor, and if you can do so | | | | Like all things, though, it just has to be done |
| before the deal term sheet is printed by your | | | | correctly, and the earlier in the process that a |
| franchisor, you'll have a lot more leverage in the long | | | | franchisee starts doing things the right way, the |
| run. | | | | better. These helpful tips may not make everything |
| 4) Negotiate Anything and Everything | | | | run perfectly, but they can provide a good start and |
| The most important thing to know when you go to | | | | the confidence that a new business owner needs to |
| the table with a franchisor is that you are not at their | | | | succeed. |