Largest African American Owned Resort in the US
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Hotel Brands Reach Out For Minority Franchisees
Hotels, Franchising, Minority Business Ownership 08-07-2002
Although starting a business is never easy, entering into a franchise relationship with a proven brand can help make the dream of being a business owner more achievable. However, minority entrepreneurs often face additional challenges-including financial barriers-that can make realizing this dream even harder. In the hospitality industry, these challenges are reflected in the under-representation of African-Americans, Native Americans and Hispanic hotel owners, relative to their populations as a whole. Recognizing the strength that comes from a diverse ownership base, some major hotel brands offer programs specifically designed to support new minority franchisees.
The right franchisee development program and ongoing support can help overcome some of the challenges faced by minority entrepreneurs, and set new franchisees on the road to business success. Prospective minority business owners who are interested in becoming franchisees should examine the programs offered by the franchisor. Some elements of a strong program might include:
Development Allowances
Some franchisors offer special financial development allowances per room to help minority franchisees meet the significant amount of capital required to successfully manage a new hotel property.
Management Company Matching
Depending on an individual's experience, it may be advisable to match up a property with a professional hotel management company to help a new franchisee during the first year of operation. Franchisors should be able to offer these resources to potential franchisees when appropriate.
Training
Ongoing and state-of-the-art training should be a part of every franchise relationship to give franchisees the tools and information necessary to meet brand standards and support business success.
Financing Referrals
Locating funding sources is usually a challenge for entrepreneurs. The best companies have relationships with numerous lenders and will introduce a new franchisee to these sources, including funding sources for minority business ventures.
Mentoring
Mentor programs provide a positive learning environment and team up new franchisees with coaches to guide them through various standards, operations, and sales and marketing strategies.
Choose Carefully & Plan to Work Hard
The benefits of a hotel franchise relationship are many: the support of a proven business model, the reputation of a strong brand, strategic national marketing and advertising programs, central reservation systems, on-going training, and technology support, among other pluses.
Potential franchisees should always research opportunities carefully before investing. And remember, the power of a well-known brand and franchisee development program are just the beginning-the franchisor should have a business plan and resources to deliver ongoing value to franchisees.
Yet, potential franchisees also need to be honest about their own experience, goals, and personal dreams. As noted on the International Franchising Association Web site, franchising is not for everyone. It requires close adherence to a proven business system and a willingness to work hard.
However, the personal and financial rewards of being a business owner-especially for a well-respected and recognized brand-can pay off enormously. There's nothing like the return of a loyal customer to your own hotel to know that all the hard work has been worth it.
More information:
1. The Minority Business Development Agency (MBDA) is the only federal agency created to foster the creation, growth and expansion of minority-owned businesses in the U.S. and its territories. (www.mbda.gov)
2. According to the U.S. Census Bureau, as of 1999 African-Americans constituted 12.8 percent of the U.S. population and Hispanics made up 11 percent. (www.census.gov)
3. Cendant's hotel group is the world's largest lodging franchisor with 6,654 hotels representing 552,528 rooms open on five continents under the Super 8, Days Inn, Ramada, Travelodge, Howard Johnson, Knights Inn, Villager, Wingate Inn and AmeriHost Inn brands. Cendant's franchised hotels sell one out of every four economy and mid-priced room-nights in the United States -- a total of 96 million room nights in 2001. (www.cendant.com)
4. The Cendant "Keys to Success-Building Wealth through Hotel Ownership" program supports greater opportunity for African-Americans, Hispanics and Native Americans in the ownership of hotels. (www.cendant.com/franchising/minority_fdp.html)
5. According to the International Franchise Association (IFA), franchising employs more than 8 million people, a new franchise outlet opens somewhere in the U.S. every 8 minutes, and approximately one out of every 12 retail business establishments is a franchised business. The IFA Website offers resources and information for prospective or experienced entrepreneurs, including programs for minority and women franchisees. (www.franchise.org)
CONTACT
For more on Cendant's programs to support new minority franchisees, contact:
Evy Apostolatos,
Manager,
Communications,
Cendant Corporation,
Hotel Group
973/496-0750
Evy.Apostolatos@cendant.com
Nicole Johnson-Reece,
Director,
Multicultural Sales & Marketing
973-496-7307 (fax)
Nicole.Johnson-Reece@cendant.com
keystosuccess@cendant.com
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