What is a drawback of being a franchisee in a hotel chain?

Being a franchisee in a hotel chain often involves high initial and ongoing fees. These fees can include substantial upfront franchise fees, royalties based on revenue, and contributions to a national marketing fund. The financial commitment can be significant, and these costs can impact profitability, particularly for new franchisees who are trying to establish their business. Additional expenses may arise from adhering to the franchise’s operational guidelines and maintaining brand standards, further adding to the financial burden. This financial structure is a key consideration for potential franchisees as they evaluate the long-term viability of their investment in the hospitality sector.