Why would an individual hotel owner want to enter into a franchise or a management contract with a popular hotel chain?
Large revenues can be earned through referral business because all of the hotels around the world belonging to the same brand name will refer business to the franchise hotel
The franchisee becomes part of the central reservation system of the franchisor
Franchising is the fastest way to expand overseas
Each franchisee becomes a salesperson in its location for the other franchised hotels of the chain
Franchise fees generate big sums of revenues without direct investments