"A consistent path to success comprises the advantages provided by the #franchise agreement and must-have awareness for 'branding'.

“Determining a path for growth and positioning through informed decisions play a significant role in achieving competitive edge and success”

We all know that the concept of franchising entered our country's commercial life in its “most popular form” in 1986, with McDonald's' entry in the Turkish market. This entry generated significant demand and we have witnessed other famous brands and big businesses follow the same path since then.

It is not surprising to see hotel companies follow various strategies like franchising to seize the opportunities in the market, as a globalization moves forward with increasing pace and both local and international hotel chains compete against each other for growth. Increasing interest shown by Turkish entrepreneurs, including those in the hospitality industry, in the franchise system reinforces this strategy. I personally appreciate this rising trend in our industry, but the trend also entails delicate complexities. Determining a path for growth and positioning through informed decisions play a significant role in achieving competitive edge and success.

Within this collaboration scheme, hotel chains are careful to maintain their position as the party that supervises operations. Operational supervision enables them to put their experience into practice. Brand image, extensive distribution network, management expertise and capabilities are among the inimitable advantages that hotel chains possess. These elements often function as part of a flawless system. This is where the needs of local investors, who want to respond to an international demand, are met. On the other hand, do the investors make a sound analysis of whether they want to focus on the domestic or international market, or do they fully understand why they are embarking on this type of collaboration, or the responsibilities that this collaboration entails, before entering the collaboration?

“A consistent path to success comprises the flexibility provided by the franchise agreement, and balancing motivation with the must-have awareness for ‘branding’. "Disciplined and consistent standardization is the practical result of this process."

The strategic union between a business and an investor, which gives the entrepreneur the right to operate in liberty, as reflective of the literal meaning of the word “franchise”, also acts as a risk sharing scheme in times of increased competition or decreased demand. Of course, it is not only about where all this begins. The journey begins with positioning the business among its competitors, determining the right price strategy and marketing tools; and gets in full swing not when the franchise agreement is signed, but when the sign of the business is installed, and the collaboration is made visible on the digital platforms. Meaningful commercial and reputational returns are enabled once the business makes the right use of its privileges outlined in the franchise agreement and launches in the market in a smart way. You ensure trust when you enter the market under a renowned brand whose quality of service is recognized in the industry. You also have the opportunity to benefit from the convenience of tried and tested approaches to management, as well as a strong distribution network. I do not use the word “opportunity” lightly here. On paper, perks of the system are laid out as part of the agreement, but it is all about building a business approach that will enable you to make the right use of these privileges. In other words, a consistent path to success comprises the flexibility provided by the franchise agreement, and balancing motivation with the must-have awareness for ‘branding’. Standardization is the practical result of this process. Standards encompass all real and potential consumers, everywhere. Standards are your “promise” to your target consumers, or guests in our industry, that responds to their demand for reliability.

Outside of digital platforms, your guests do not have the means to become fully acquainted with a hospitality business that they are visiting for the first time. It is of utmost importance for the facility to have qualities that fulfil expectations. For this reason, guests tend to choose brands that leave no room for doubt when it comes to standards.

We are in the digital age, and everything changes at a very fast pace. People expect faster and easier access to information. As technology continues to advance, the need for “branding” becomes as important as digitalization. In today’s competitive environment, the biggest determinant of corporate value is “branding”, in other words the capacity to offer consistent standards. You establish a harmonious synergy with your target consumers when you create a brand or fulfil the requirements of being under a brand through the right implementation of standards. This approach also creates shield of trust even with the employees. You take steps towards becoming a brand because you are seeking a distinct corporate identity and a reputable image. Once others experience your brand and your brand invokes positive feelings in your target consumers, it becomes clear that your brand brings returns based on loyalty.

The physical amenities of your business or the physical attributes related to the hospitality experience you provide alone are not enough to create the experience itself. You should see the qualitative aspects called “functional quality” as important as physical attributes. We should remember that a hospitality business is a labour-intensive establishment where mechanization and automation play limited roles.

Investors, managers and employees alike should commit to the vision of “providing consistent and quality products and services through all departments”.

In a franchise scheme, investors, managers and employees alike should commit to the vision of “providing consistent and quality products and services through all departments”, which would or should be the most fundamental characteristic of the international or domestic hotel chain that you are affiliated with. Your level of quality and approach to implementing standards are very well understood, scrutinized, and compared, to an extent that you might not even be aware of. For this reason, you should not make any sacrifices when it comes to standards, be it for reducing costs or due to workforce considerations, as you carefully analyse the flexibility that you are provided with for local applications. This meticulous process starts with designing your building according to the physical standards of the brand that you are affiliated with and comes to maturity now when you open your doors to guests. This responsibility accompanies your journey, from choosing the managers to welcoming, hosting, and parting ways with your visitors, and ensuring full compliance with brand guidelines that are continuously developed and appreciated by guests. At this point, you will find yourself in a position where you can evaluate the efficiency your brand more fairly. Businesses that implement the standards, succeed in quality management, and receive their guests’ approval for these efforts can make the best use of a brand’s marketing, reputation and above else booking and distribution capabilities. Of course, you may still have some more expectations. Necessary solutions can be provided easily, or support may be secured quickly within a collaboration where parties fulfil their responsibilities to one another fully.