Host vs. Franchise

 

There are two effective ways to partner with another entity in the travel business: affiliate yourself with a host or own a franchise business. What’s the difference? Chiefly, you own a franchise business. When someone joins a host they create a job for themselves, when they become a franchisee they are building a business for themselves. They’re not just a travel professional they’re an entrepreneur whose business is to sell travel.

The most important point in the franchisee’s success is the basis for the success of the franchisor. Simply put: if you don’t make money, they don’t make money.

Membership-based vs. Success-based business This is another way to spell out the difference between a host and a franchise. The host business model is about memberships to make money; while the franchise opportunity is about success. Your success as an owner means their success as a company. Below are some solid points of differentiation:

Franchise

  • You own a franchise business.

  • It’s regulated by the Federal Trade Commission (FTC). 

  • You have the power of brand recognition and the ability to advertise and represent yourself with that brand name.

  • The royalties paid are based solely on what you sell and go to support the infrastructure of the franchise home office.

  • You have the use of proven systems to guide you and your business.

Host

  • You are a member of their organization.

  • You don’t own the business or your client list.

  • It is not regulated by the FTC. 

  • You are not to use the host name to represent yourself or your services.

 

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