The franchise business model bolsters New Jersey’s entrepreneurs and economy | Opinion
When my family entered the hotel business in 1979, the world looked a lot different. But there has always been one constant: Americans’ desire to visit new places and enjoy new experiences. As president of Hotels Unlimited, I’ve had the opportunity to serve people from all over the world, priding myself on delivering superior services and top-quality amenities. The Hotels Unlimited family includes Hilton, IHG, Wyndham, Radisson and Marriott — respected and trustworthy brands that I am proud to work with and that consumers trust.
What makes our hotels such great partners is a shared commitment to safety, cleanliness and exceptional customer service across our brands. Something many people may not know is that these high standards are made possible through the franchise business model. Franchised hotels like the ones I work with are successful because they ensure common standards, procedures and amenities are present across all locations. Franchisees also benefit from access to the marketing expertise of the larger brand — which helps to advertise these standards and sets them apart from other hotels in the area.
Everything from cleanliness and safety standards to the types of soap and coffee in your hotel room is part of a brand’s standards. If a guest had a positive experience at one branded hotel, they will likely consider staying at another hotel from that same brand on their next trip. That’s why the franchise model is so crucial in the effort to generate repeat customers.
A franchised business is independently owned and operated, but it falls under the umbrella of a larger, more well-known name — like Hilton or Marriott. In fact, 50% of all U.S. hotels are franchises — and they are often run by local small business owners with a strong entrepreneurial spirit. My family has worked with franchised hotels for decades and we are consistently impressed and inspired by the hard work that hotel owners put towards the customer experience.
My parents took advantage of the franchising path when they started their business decades ago, passing up the option of running an independent hotel because they knew being part of a greater branded community would ensure their success and longevity. That has proven to be true all these years later. Hotels Unlimited started with 24 rooms in 1979 and has since grown to include 1,400 rooms across 10 properties. With easy access to brand expertise and standards that create a safe and welcoming environment for guests, customer satisfaction is high — and our partners reap the benefits.
Business owners from all backgrounds continue to franchise because of the great potential for success. As entrepreneurs, franchise hotel owners are no strangers to confronting new challenges and overcoming obstacles. But we never could have imagined that one of our greatest obstacles would be harmful politics that threaten the franchise model.
Unfortunately, legislation is being considered in New Jersey — A1958 — that threatens to alter some of the core practices that make franchising a successful business model. One practice that would be severely undermined as a result of this legislation is the ability to maintain brand standards across all franchised locations. This will diminish the viability of the franchising model by weakening a key driver of guest satisfaction: the recognizable amenities, standards and procedures that visitors expect during their stay — threatening return customers that hotels have had a relationship with for many years.
Equally as important, A1958 could also affect customers’ ability to use the hotel loyalty points that they’ve built up over the years. These travelers will simply take their business elsewhere if they cannot use their hard-earned loyalty points — greatly impacting franchisee small business owners.
Ultimately, these proposed changes in A1958 would have an adverse effect on franchisees and franchisors by forcing changes to a system that many hoteliers have built their careers on. Franchising has played an integral role in me and my family’s livelihoods and is an important first step for aspiring business owners across all industries. The New Jersey Legislature must protect this critical relationship and continue to strengthen our franchised businesses.
When franchised businesses are successful, the effects spread far beyond that single business. Customers get the experience they want, entrepreneurs can continue to build their careers and the entire local economy thrives.
Carey Tajfel is the President of Hotels Unlimited, a family-owned, New Jersey-based hospitality company.
This article originally appeared on Asbury Park Press: NJ economy franchises hotel business
