Recent trends strongly suggest that hotel chains prefer the management route instead of the franchise model to ensure the mushrooming of their business.
Industries globally have grown phenomenally by using the ‘franchise’ model of business. To fuel their expansion, branded companies have consistently offered franchise services, which have often proven to be a win-win situation for both the franchiser and the franchisee. In the hospitality industry too, franchising has proven to be a profitable business endeavour.
Consistency in product, coupled with strict regulations by the government on hygiene and health has helped the business flourish, especially in western countries. However, in India, the franchise model itself has not been a sure-shot success. Let’s first look at how the franchise model made its foray into the Indian hospitality sector.
Venture of franchise
Franchising as a concept evolved in the Indian hotel industry in the1990s. In the last decade or so, various companies in the country have gone in for the franchise route.
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