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Le Sutra Hospitality mulls franchise expansion

Guest post by: Dhawal Shah

Article Overview: The Bajaj Group of Hotels, branded under Le Sutra Hospitality, is planning to open hotels and restaurants across the nation in the next three to five years. The company is going to invest Rs 300-500 crore for these hotels and restaurants, which will be a mix of both company owned and franchised, confirms a company official.

Le Sutra Hospitality mulls franchise expansion

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Article Tags: franchise expansion, hospitality, hotels, restaurants



Related Forum Posts
What are the signs it is time to expand? - I work with small businesses that are considering expansion. Sometimes they are not sure if expansion is the right thing for their business. What types of things should they be looking at to determine if the time is right to expand?
Franchising vs. Licensing - While Ken's definition of a franchise is correct, I disagree with his statement that a franchise and a license can mean the same thing. A franchise [u:2pwsjr5r]contains [/u:2pwsjr5r]two licenses. A trademark license (the name and fee) and a business opportunity license (a system and a fee). The combination of those licenses in the same relationship creates a franchise. If you want to license a business opportunity, you need to tell your licensee that they [u:2pwsjr5r]cannot use your trademark[/u:2pwsjr5r]. If this is your growth strategy, you will neglect to build a brand. While that is not always important, it often is. We tell our clients not to think of whether a particular business relationship will be, but instead to structure the relationship the way it makes sense from a business perspective. If it then turns out to be a franchise or a license, then so be it. The difference in cost between the two forms of expansion, done properly, is not very signficant. If you are interested in learning more, I would be happy to send you a free copy of a one hour seminar on "How to Franchise a Business." It goes into some detail on this topic. You can write to the email below or get it on my website.
Franchisers approach for Negotiations - There are a number of ways to negotiate with a franchiser. With respect to advertising, I would recommend reviewing the aafd.org standards on advertising and try to get your franchiser to basically redraft their franchise agreement to meet those standards. The reason for this is the advertising helps the entire system and every franchisee needs to know that their advertising dollar is really going to third parties who have expertise in the area. Territories are very different. You should try for amendment to the franchise agreement, which reflects your own territorial needs. Don't try to change the franchise agreement, just add to it. To get a territorial change, you have to present a good business case, which addresses the franchiser’s need for expansion. It would be helpful if you could discuss your actual concerns in further detail
Franchising is not a "no-cost" expansion model - Don's point above was right, and, if he only lost $5,000 getting into franchising, he got off very cheap. Getting into franchising is a serious business. We estimate that you need [u:32pu99ec]at least [/u:32pu99ec] $50,000 to do it right -- and it can cost five times that much for an aggressive expansion plan. Jim was right on. If you choose to franchise, you are getting into a new business -- the business of selling and servicing franchises. Mark
Hello I am a franchise expert - Hello, I recruit franchise owners for successful franchise concepts based in the USA. Many of my franchises are looking to expand north to Canada in all major centers. I enjoy networking and answering questions about franchising. If anyone is interested in the franchise world or looking to buy a franchise then contact me. I have a wealth of information and like to help. Thanks for your time. Michael Somer


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