.Franchising

In this situation the hotel owner 'buy-in 'a specific style of operation from a parent/owner of the operation format. The formate parent or 'franchisor' owns the businessformt, the trading name and all propriety aspects of the operation- the formula or design of the nusiness.it training, advertising and techinical advice. The operator,a franchisee, is given a licence to operate in the franchisor's name, in return for the payment of a royalty fee.

a franchising licence may be granted to an operator (or franchisee) for one or severa operations. A licence which gives an operator exclusive rights in a particular territory iscalled a master franchise. As exchange for the payment of the royalty fee, the franchisee wil recive a standard operating format and the necessary black up to launch and maintain the business.