In our franchise agreements, we evaluate a third-party operator who has prior experience in running a property or the property owner to run the property with qualified staff. Accordingly, under such agreements, we neither own, lease or manage the hotel. We derive revenue from a brand royalty or licensing fee which, under most of our franchise agreements, is based on a percentage of total room revenue generated by a hotel. In addition, we collect marketing fees based on total room revenue and reservation fees based on the number of reservations made.
We can assist third party owners of the hotel to get the brand franchise from the international brand like “Wyndham worldwide” “IHG” “Radisson” “Accor” etc., who are the brand owners of Holiday Inn, Ramada, Park Inn, Accor etc.
To maintain our brand image and value, franchisees are obligated to meet specified brand standards. A franchisee also has access to our reservations system and is provided with marketing support and other know-how for operating the hotel.
The duration of our franchise agreements are between 5 to 10 years.