Franchise costs

← Explore Branding And Franchises

You want a brand to make your hotel more profitable, both by increasing your bottom line through marketing and by sharing to reduce the costs of large-scale services. Franchise companies provide and continually upgrade those marketing and sharing services because they are in business to make money.  

As a franchisee, you pay royalties for the use of the brand, marketing and reservation fees, fees for the loyalty program, and a variety of other fees for everything from the initial brand application to training. Analysis of the fees to make sure you will get a return on your investment is one part of your due diligence. There are variations in the costs of franchises and in how fees are structured. They may be a percent of room revenue, fees per room occupied or per reservation, fees per room available, fixed fees and other measures.