FRANCHISING AS A STRATEGY OF ENTERING FOREIGN MARKETS IN THE HOTEL INDUSTRY

Abstract

Objectives: This paper aims to provide the theoretical basis of a franchise business with particular
reference to the hotel industry. In addition, this paper aims to provide a detailed analysis of the
world's most prominent franchises in the hotel industry and compare the situation in Croatia to the
rest of the world.
Methods: Almost half (47%) of all franchised hotels globally are owned by four large franchise
chains: Accor, Marriott International, Hilton and InterContinental Hotels Group. In order to provide
the essential theoretical knowledge about the franchise and franchise business, these four hotel
franchises are analyzed.
Results: Franchise business presents an excellent opportunity for future hotel owners. However, the
analyzed hotel groups do not offer direct or indirect financing forms to help interested entrepreneurs
enter into a franchise business.
Conclusion: A franchise business is an attractive entrepreneurial alternative for entrepreneurs who
have lack of knowledge and lack of capital. The franchise business in the hotel industry in the
Republic of Croatia is present but not to the same extent as in other tourist developed countries.
Therefore, it is necessary to design appropriate sources of financing that would facilitate entry into
the franchise relationship.