This dissertation explores the conflicts in franchising concept with the help of case study of Leicester Marriott hotel located in UK. Franchising is an extremely important concept in hospitality industry adopted for the expansion of business. The purpose of this research paper is to identify benefits and conflicts with business franchising in hospitality industry. The franchising concept would be analyzed and evaluated. The study is of great values as it helps in evaluating various facts related with franchising conflicts in hospitality industry. The research paper deeply focuses on various facts which cause conflicts in franchising concept. Apart from this, research paper also helps in identifying various remedies to avoid conflicts in franchising concept.
An appropriate research methodology is used in the paper so that authenticate data can be collected for the evaluation purpose. Both primer and secondary research methodology are adopted in the paper so that data can be analyzed both in quantitative as well as in qualitative manner. The research paper helps to find out the significance of franchising in the hospitality industry. It can be said that on the basis of findings from the research paper that franchising has a great contribution of growth of hospitality industry all across the world. The findings from the research paper provide evidence that franchising conflicts generally happens due to miscommunication between franchises and franchisors.
The main conclusions drawn from this study are both success of franchising depends on the co-ordination between franchisors and franchisees. It can also be concluded on the basis of this paper that franchising allows business to grow with less risks and investments. This dissertation recommends that both franchisor and franchises should co-operate with each other in business activities. Franchisor should provide adequate support and trainings to franchises. On the other hand franchises should strictly follow the guidelines given by franchisor.
In the current competitive environment several strategies are adopted by organizations to expand their business. Franchise is a business arrangement in which a group or individual are granted rights by organization to carry the business activities of selling goods or services within a defined location or territory. This arrangement helps organization in expanding their business and brand name in minimal costs (Fay et al., 2002). The franchising system is developed in hospitality industry so that high quality services can be delivered to customers. With the help of franchising concept consumers can perceive about service standards of particular hotel on the basis of bran name of franchisor. Franchising is the most common expansion strategy in the hospitality industry. Franchising in hospitality is beneficial for both franchisee and franchisors (Neil et al., 2008). It brings an opportunity to franchises to provide their hotel a brand name as well as can run the business as per international standards of the brand.
Franchising model of business also leads to some conflicts between franchisees and franchisors. The all terms and conditions to run the business are signed by both franchisee and franchisor at the initial phase of the process and the contract is known as franchise agreement. However there are certain factors which create conflicts between franchisees and franchisors. It is revealed on the basis of studies done by scholars that most of the conflicts occur due to lack of communication between franchisee and franchisor (Lussier, 2011). In case franchisor does not respond to franchisee queries and expectations that make franchisor dissatisfied with franchisor.
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The success in hospitality industry is based on the customer satisfaction which can be achieved by delivering high quality services. In this situation it becomes extremely important for both franchisees and franchisor to work in close coordination with each other so that high quality services can be provided to customers. Leicester Marriott hotel is well known name in UK hospitality industry. The hotel is located at central England which makes it a popular place for both business and leisure travelers to stay. Marriott international, Inc is one of the largest franchises across the world. In this research paper different aspects of franchising will be discussed. It is a fact that franchising strategy helps business grow and expand (Pizam, 2010). At the same time there are certain conflicts with this expansion strategy adopted by several business organizations. Leicester Marriott hotel has faced some problems and conflicts with this business model. However there are certain remedies which can help in establishing better coordination between franchisee and franchisor.
The research paper is focused on the conflicts and remedies associated with franchising at Leicester Marriott hotel. Marriott International is a well known name in hospitality industry across the world. The Marriott International Inc. has over more than 70 hotels across UK and Ireland region. The Marriott brand is a symbol of luxury and comfort for customers. The Leicester Marriott hotel was opened in the year 2006 at the central England which provides all comforts and luxuries to customers as expected from the Marriott brand.
Marriott International Inc is a well known hospitality chain across the world. The company was establishes by J. Willard Marriott. As of now, the company has more than 3,150 hotels in America and other 68 in other parts of the world (Hsu and Powers, 2002).
The paper will emphasize on different benefits of franchising system in hospitality industry. Primary benefit of franchising includes; it helps organizations to set up a number of outlets in short duration of time. It is a fact that business plan is always provided by the franchisor but franchisee needs to take care of major investments like land required to start the business, inventory, and working capital. Franchisor generally provides administrative support to franchisees like assistance in opening the business, and assistance in training and quality control issues. In addition to this there are certain disadvantages with franchising model for both franchisees and franchisors (Bernardo, 2009).
In spite of certain advantages of the franchising system in hospital industry, it is observed that this system also give rise to conflicts between franchisee and franchisor. It is observed that when an individual interest of franchisees and franchisor collides then it results into conflicts between them. The most important factor behind the conflicts between franchisor and franchisee is the lack of communication (March, 2000). It is the responsibility of franchisor to take care of interest of franchisee like they should be paid appropriate manner. In addition to this if in case any franchisor also need to provide full support in trainings and operating procedures to franchisee. If proper support is not provided by franchisor then it also leads to conflicts.
Apart from the above mentioned facts, the paper will also focus on different remedies which can help in avoiding conflict between franchisor and franchisee. It is a fact that conflicts are not good for business. Additionally, both franchisor and franchisee needs to have excellent co-ordination between them to continue the business for long time. In order to avoid conflicts the most important thing is the selection criteria adopted by franchisor to select franchisees. Franchisor should select franchisees as per their experience in the business, understanding of the franchise relationship and should have commitment for the business. Apart from this franchisor also need to establish good communication and co-ordination with franchise to avoid any chance of misunderstanding with franchisees.
Franchising is a popular concept used for expansion of business in present scenario. In order to ensure success of the business, a detailed analysis of concept is required. There are two parties involved in this business format which can lead to conflicts in this format (Weaven et al., 2010). It is quite evident that success of business depends on relationship between two parties. In this case, it is necessary to understand various facts which can lead to conflicts in franchising (White, 2010).The research paper would try to identify various reasons which can cause conflicts in a franchising business relationship. With the help of this study, it would be possible to suggest some remedies to avoid conflicts in franchising.
The better coordination between franchisor and franchisees is extremely important in the highly competitive hospitality industry. If there are any conflicts between franchisors and franchisees then it will impact their quality of services as well as overall productivity. In a highly competitive UK hospitality industry it could be extremely harmful for both franchisees and franchisor. As any compromise with the quality of services delivered to customers can results into the loss of business. Apart from this, it will also impact the brand image of franchisor in the industry (Cunill, 2006). The various issues which results into conflicts between franchisor and franchisees are well focused in the research paper.
The research paper identified the various remedies to avoid conflict in franchising system. It is mentioned that timely sharing of information and mutual expectations always help in reducing conflict between franchisee and franchisor. Teach and every condition should be clear for both franchisees and franchisor at the time of agreement. Apart from this, mutual co-operations and understanding always help in avoiding franchising conflicts. With the help of this study hotel Leicester Marriott can avoid all conflicts relate with franchising system which will also pave the way for its future success.
Conflicts generally occur in franchising business format in hospitality industry. This research topic would help in analyzing various factors that causes conflicts between franchises and franchisors. Apart from this, the research topic would also help in identifying various remedies for the conflicts in franchising business. This topic would be high help to know various responsibilities of duties of both franchises and franchisors in hospitality industry. In this dissertation case study on Leicester Marriott is chosen for the paper. As Leicester Marriott is a leading hotel in UK hospitality industry it would be easy to connect various factor with the organization Apart from this, Leicester Marriott is chosen as the hotel run business based on franchising concept.
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Research Aim: Business franchising is extremely helpful for organizations in their expansion process. The aim of this research paper is to analyze the concept of franchising in hospitality industry. In addition to this, the research paper will also focus on conflicts and remedies for franchising in hospitality industry. Therefore the research aim of the paper can be defined as
“To identify benefits and conflicts of business franchising in hospitality industry through use of a case study on Leicester Marriott hotel.”
Research Objectives: In concern to the above mentioned research aim, the research objectives identified for the papers are mentioned below.
To identify, analyze, and critically evaluate the franchising concept and the sources of conflict between franchisee and franchisor related to the hospitality sector.
To identify, analyze, and critically evaluate the various responsibilities and agreements in franchising between franchisee and franchisor related to Hospitality industry.