HFT 1000 Exam 2 (with 100% Verified Solutions)

Chain Operations correct answers Business under one form of management or ownership Chain Operation Examples correct answers Holiday Inn Holiday Inn Express Sunspree Resorts Candlewood Suites Ownership of Chains correct answers The chain could be owned by a company of an individual, a group of investors, or a large parent company/ corporation. Operations of Chain correct answers -Corporate- owned by parent company -Franchised- run by a 3rd party and chain receives a franchise fee Other Characteristics of Chains correct answers -A hotel within a chain could be managed by a management company, a company with domain expertise that operated a hotel for another party such as the hotel owners. -Group and organizations that provide specific benefits such as marketing assistance, reservation services, and quality endorsement. Structure and Business Models correct answers -More complex with increasing size -Complexity comes from the ownership and management contracts that form the basis of the relationships between the unit operators the corporate office Simple Form (Full Equity) correct answers -Each unit has a Single owner/ investor -Parent company fully owns and operates all the units in the chain -All profits obtained belong to parent company -All employees belong to parent company -Able to consolidate sales and cost of all units into one total. -Marketing campaigns paid for by parent company -This structure is found in local or regional chain operations Mixed Form correct answers - Some units owned and operated by the parent company (franchiser) and the rest owned and operated by other owners/ investors (franchisees) - Size of chain and percentage of total units owned has an impact on the franchise. - Franchisees may own multiple units Ways in which franchisers derive their revenue correct answers -Franchising Fees -Incentive Fees -Royalty Fees -Marketing Fees -Other Fees Management and Franchise Form correct answers -Parent company (franchiser) offers professional management services for its non-company owned (franchised) units.