14 Unit One Welcome to Hospitality
Copyright Goodheart-Willcox Co., Inc.
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.
recipes. The franchise agreement would include
how much Mary would pay for the franchise (the
franchise fee) and the ways in which Antonio is
required to help her start the business. The fran-
chise agreement would also include the require-
ment 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 excellent
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 fran-
chise 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 inde-
pendent would be a bed-and-breakfast run by a
single family. Hotel chains include Holiday Inn
and Hilton 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
major 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 behalf
of the industry when it must be represented at a
governmental level.
Professional Associations