14 Part One Welcome to Hospitality
Antonio’s Business Expands
Independent
Antonio is sole owner of one unit.
Chain Antonio is sole owner of three units.
Franchise Antonio is owner of three units and the Amore’s brand. Mary, as a franchisee,
owns one unit.
Goodheart-Willcox Publisher
1-13
Antonio’s business expands from an independent business to a chain. He then franchises a
restaurant to Mary.
mother’s recipes. The franchise agreement would
include how much Mary would pay for the fran-
chise (the franchise fee) and the ways in which
Antonio is required to help her start the business.
The franchise agreement would also include the
requirement that Mary run the business however
Antonio wants. Mary might have to pay a certain
percent of the profi ts to Antonio. The advantage to
Mary is that Amore’s is already famous for its ex-
cellent food. Mary will also get help from Antonio
to start and run her restaurant. It would be more
diffi cult for Mary to start her Italian restaurant
from scratch. Mary will own her unit of Amore’s,
but she will be part of the Amore’s chain. As a
franchise of the Amore’s chain, she must follow
the rules set by Antonio, 1-13.
One of the most famous restaurant franchise
operations is McDonald’s. Burger King, Wendy’s,
and Subway are other well-known restaurant
franchises.
The lodging industry also has independents,
chains, and franchises. An example of an indepen-
dent would be a bed-and-breakfast run by a single
family. Hotel chains include Holiday Inn and Hil-
ton Hotels. Many hotel chains also sell franchises.
For example, some Hilton Hotels are owned by
Hilton; others are franchises.
A professional association is a group of
people organized to improve themselves, their
profession, and their industry. Professional asso-
ciations are also called professional organizations.
Professional associations provide a way to meet
others in the profession, learn about the latest
trends, and make friends. The hospitality indus-
try has over 50 professional associations. The ma-
jor association in the foodservice industry is the
National Restaurant Association (NRA). In the
lodging industry, the major association is Ameri-
can Hotel & Lodging Association (AH&LA). The
major association in the travel industry is the U.S.
Travel Association.
Professional associations work to benefi t the
professionals and better the profession. Members
have the opportunity to learn more about the pro-
fession. Professional associations also act on be-
half of the industry when it must be represented at
a governmental level.
Professional Associations