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
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You own a franchise business.
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It’s regulated by the Federal Trade Commission (FTC).
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You have the power of brand recognition and the ability to advertise and represent yourself with that brand name.
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The royalties paid are based solely on what you sell and go to support the infrastructure of the franchise home office.
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You have the use of proven systems to guide you and your business.
Host
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You are a member of their organization.
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You don’t own the business or your client list.
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It is not regulated by the FTC.
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You are not to use the host name to represent yourself or your services.