Economic Chain Hotel Franchise Management Research

Following with the rapid expansion by means of capital promotion, the economy hotel industry is going to face a problem of brand integration. Franchising will be a significant mean in the industry's future expansion strategy, for the international experience has verified that it is the destiny of China economy hotel industry. Just walking on the threshold of franchising, there is vast development space for China economy hotels compared to international market. On the other hand, there are lots of difficulties occurring and many management problems arise as well because of our short industry history and lack of experience. Take Super 8 China for example, the essay analyses the problems occurred in China economy hotel industry and puts forwards solutions for China economy hotels with comparing to the successful experience of McDonald's in the essay.As the franchiser, Super 8 China attaches inadequate importance to those aspects of standardization, franchisee choosing, regional development planning, supporting system construction, and profit mode designing. For instances, the system standardization couldn't be realized for the differences among the franchisees, such as the different level of hardware and software, price system and alliance fee etc., which impacted the loyalty of franchisees. The faultiness of supporting system and imperfect training system has also been testing the franchisers' Faithfulness. The headquarters of Super 8 China have been unable to manage with more franchisers' participation. There are many problems occurred and problems of losing control, declining of quality standards and wrong profit model aggravated the relationships with franchisees.Super 8 China is one of the earliest franchising brand of economy hotel, which operating status largely reflects the present situation of China franchising economy hotels. It is of great importance to analyze the problems of Super 8 and put forward solutions which provides sources of reference to other franchising economy hotels in China. Successful franchising has to be closely related with standardizations, Corporate Culture, franchiser choosing and supporting system. McDonald's does excellently in those fields. McDonald's is one of the world's leading food companies and its secret of high-speed development is due to franchise. China economy hotel could learn much for they have similar operating characteristics, though there are in different industries. Starting with McDonald's standardization, the author analyzes the success factors of McDonald's franchise and introduces how would McDonald's deal with Super 8's existing problems, and then makes solutions on standardization, franchisee relationship management and supporting system design etc.