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Hotel Investments & Development

Lecture 4: Franchise Agreements

Comprehensive exam-prep quiz on hotel franchise agreements, asset-light hotel business models, franchisee brand selection, franchisor/franchisee advantages and risks, key franchise agreement terms, third-party management companies, and who can be a franchisee. Source:

Question 55 of 60

Sort the following franchise selection considerations into the correct lecture category.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

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Drag each statement into the correct group.

Does the chain have recognition among the hotel's source markets?

Will the brand attract guests who find the hotel's service level attractive?

Can the brand prove RevPAR or occupancy impact in comparable markets?

Where are guests likely to come from?

What do current and former franchisees say about the franchisor?

How does the franchisor handle similar affiliations in the same market?

What are the royalty, reservation, marketing and loyalty costs over 10/15/20 years?

Does the brand connote the right facility type and quality level?

Understand the brand image

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Understand the feeder markets

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Understand the total cost of affiliation

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Understand the franchisor

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Understand the performance numbers

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