The Top 5 Reasons to Buy a Hotel Franchise
What’s the first thing that comes to mind when you think of buying a hotel franchise? Expensive, big investment, and hard work? While there are some elements of truth to these, buying a hotel franchise can be one of the best decisions you’ll ever make in your life. Here are the top 5 reasons why you should consider buying a hotel franchise.
What is a hotel franchise?
It’s not hard to figure out why someone would want to buy a hotel franchise. Being in charge of your own hotel franchise business, hiring people and getting to use your management skills all make owning one seem like an amazing idea. But what is it that makes owning one so desirable? Knowing what you are buying into before you sign on will help you decide if it’s worth it for you.
Main reasons why you should consider buying a hotel franchise.
Buying a hotel franchise is profitable and safer than starting your own hotel business from scratch. You can own your own business, have work-life balance and fulfill your dreams of owning a business. Usually no previous experience or education is needed to buy a hotel franchise and you’ll receive all support along with marketing materials and ready-made customer base right away! Read our top 5 reasons why you should buy a hotel franchise below!
1) Large potential customer base.
Hotel franchise businesses attract customers through a variety of different marketing techniques, including advertisements on billboards and at sporting events, direct mail campaigns, and freebies. These efforts can provide your business with valuable feedback from new clients. By purchasing a hotel franchise, you’ll already have thousands of potential customers at your disposal – many of them will already be familiar with your name. That means it’s easier for you to get started in business and develop client relationships because there will be less work on your end when compared to developing brand recognition as an independent entrepreneur.
2) Brand recognition from day one.
A major advantage of buying into an existing hotel franchise is that it has a brand name—and in some cases, national recognition. People will have heard of them and may have even stayed in one of their hotels. For example, easyHotel is one of the UK’s most recognisable brands and they have locations all over Asia as well.
3) Buying a franchise is easier to get financing than starting an independent business.
If you want to buy a franchise, you might be able to get financing more easily than if you were starting your own business. That’s because banks and other financial institutions typically require less risk from established brands with well-known formulas. If banks are lending money for your startup, they might take between 30% and 50% of equity in your business, according to Mashable. You don’t pay royalties or monthly fees: Many people don’t realize that with an independent business—like one you start yourself—you have ongoing costs like marketing. But when you buy a hotel franchise, those expenses disappear.
4) You can choose a hotel franchise which you think would fit your needs best.
Before buying a hotel franchise you have to know what makes one franchise better than another. Many people believe that just buying a hotel franchise is going to make them successful, but that’s not true. In fact, according to What-Franchise.com only 80% of new franchise businesses survive 5 years operating although this may sound like a high success rate and it is in the whole of business but it also shows there are risks to everything even hotel franchises. Buying an existing hotel franchise gives you many benefits including knowing exactly what will happen in your business because there is already an established business model for you to follow and what you need from management and employees is already in place. When it comes time for purchasing a hotel franchise there are certain things you should do as well as certain things you should look out for to choose the ideal franchise for you.
5) Easier to employ staff.
One of hotel franchising’s key benefits is that you don’t have to hire and train your own employees; that responsibility falls on your franchisor. However, if you do decide you want full control over your staff, owning a hotel franchise allows you greater flexibility in hiring and firing. You’ll also know exactly how much any given employee costs because all payroll records are transparent and monitored. This means it will be easier for you to employ only staff who meet your high standards. Plus, since multiple hotels follow similar procedures, there’s no need for every site manager to invent new training techniques from scratch. The system is already in place!
Conclusion around buying a hotel franchise.
If buying a hotel franchise sounds like the ideal business opportunity for you. Take action today and browse our list of hotel franchises that are available across the UK. If you have decided a hotel franchise does not sound ideal for you or fit your specific needs you can browse our full franchise directory providing a list of over 1,000+ different franchises for sale across a wide selection of different industries.