IndexIntroductionBasic information available on franchisingFinancial and economic health of potential franchisorsCompetitionValue-added servicesCustomer needsPresence of intellectual property rights infringementLegal environmentAvailability of reliable partnersConclusionIt is necessary to explore the dimensions that influence some decisions -creation processes of mid-range Chinese hotels when they enter into franchising. It is necessary to conduct an analysis of the advantages of franchising as a means of participating in hotel operations in the Chinese market. This includes all hospitality companies that are entering or expanding operations from their current Chinese base. Some of the major drawbacks, which also represent negative dimensions, include adapting to market preferences and tastes, acquiring reliable business partners, and protecting against infringements of intellectual property rights. The other additional dimensions include strong competition, value-added services, legal environment and customer service. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay IntroductionThe franchise, despite enjoying a relatively obscure existence in the early 1990s, has seen wildfire success in recent years. This article shares some findings from reliable retrospective studies on franchising in China's mid-market hotel industry. With more than 10% of its hotel industry acquired by franchised hotel chains, China currently has one of the fastest-growing franchised sectors in the world. Furthermore, the country is the world's largest host country in the franchising industry, with over 200,000 franchised outlets belonging to nearly 2,600 international brands (Chao, 2008). Driven by the historic success of brands like Lining and Nike sportswear, China's franchising sector has expanded at an attractive rate of more than 35% annually over the past decade. Hotel franchising achieved popularity in China in the early 2000s, as businesses in the industry began to reap the benefits of the model. Franchises act as strategic business alliances that facilitate an investor's ability to participate and operate in an established organization with a strong customer base (Altinay, 2003). A company might also have other desirable characteristics such as successful business plans, efficient distribution systems, and financial commitments. There are many world famous hotels such as Hilton and Intercontinental Hotels that use the franchising system. Unlike China, the hotel franchising sector in the United States is experiencing a record boom of more than 70%. They function as a chain of properties interconnected through a single centrally managed brand (Hoover & Ketchen, 2003). Most American entrepreneurs who buy and open hotels realize the many benefits of being part of a single franchise. They include instant brand recognition for new properties and the credibility of association with renowned entities. In both China and the United States, investors are faced with the urgency of selecting the best franchise from the selected list. They consider, among others, issues such as location, target market, franchise cost, general reputation, and financial standing (Hu & Meng, 2004). Below are the dimensions that influence the decision-making process of franchising adoption by mid-range hotels in China. Basic informationavailable on franchises Choosing a hotel franchise in China requires an adequate amount of basic research. This requires the creation of a foundation that will take care of the appropriate analysis of the property in question. It is therefore essential that hoteliers consider additional dimensions such as location and target market. Therefore, most hotel owners in China would think twice before franchising with brand names notable only for the Western world. Likewise, hotels that seek to identify with the middle class usually avoid franchises renowned for the rich and famous. This is reason enough why mid-range hotels in China avoid brands like Serena, Intercontinental, and Hilton Hotels (IHG, 2012). Franchise royalties and other expenses, including general system reservation, required prior to franchising can prove steep. It is therefore worth conducting a background check on all existing chains to ascertain which offers the best value for the franchise. Startup costs in China tend to vary greatly depending on the value of the chosen brand and global reputation. The global hotel industry consists of a number of major companies that offer services that help franchisees evaluate their affiliate options (Inma, 2010). When performing cost-benefit analyses, it is critical to consider the number of new consumers a particular affiliate can attract. Contextual studies can reveal areas that could expose a franchisee to unfavorable regulations hidden in the franchise agreement. Different hotel franchises have been noted to pose unique policies intended to impact the operations of an affected hotel property. Most franchises, for example, usually require a standardization service which may not benefit potential owners (JLJ, 2007). Likewise, most franchises usually place regulations related to the prominent placement of the franchise logo in such a way that it could influence the branding of a particular property. Furthermore, previous research would reveal that immature termination of the franchise agreement usually results in severe penalties. Likewise, legal documents associated with franchising and licensing often protect the franchisor involved from court battles. Therefore, the above dimension should always be considered when selecting a hotel franchise in the People's Republic of China (Jackson, 2006). Financial and Economic Health of Potential Franchisors Affiliation with a particular hotel franchise has historically proven to be a lifetime investment. The economic health of potential franchisors should be considered before entering into affiliation agreements. This dimension is important as it reveals the long-term reliability of the binding trade agreement. The future of a franchise, for example Premier Inns, and its growth potential are vital dimensions when evaluating a possible franchise. These function as the centralized benefits that the brand would offer to its new hotels (Paswan & Kantamneni, 2004). Globally recognized franchise agreements act as long-term agreements; it usually extends for several years. This implies that the long-term viability of such a franchise agreement between, for example, Premier, Accor and Ibis, is very vital. It has also become useful for hotels to contact potential franchisees and use available online resources when evaluating Chinese hotel franchises. The decision to adopt and affiliate with a certain brand would likely have a huge effect on one's futurehotel facility. Therefore, careful consideration of the above dimension and effective due diligence would help in creating strong business relationships (Zhang & Pine, 2005). Competition China's current economic success has led to the growth of a rapidly growing middle class with a desire for vast national resources. voyage. Benefiting from this tour boom are the hotel chains that are growing so quickly. In fact, franchises are created and affiliated daily. One such player is the Budget hotel franchise: Hantings Inns. This is a chain founded by Chinese tycoon Ji Qi almost ten years ago. Currently, the company boasts a breadth of over 100o hotel properties across China across four leading brands (Mak, 2008). The boss of Hantings Inns expects his business empire to become the world's largest hotel franchise by 2020. According to competitors, the franchise will absorb an adequate amount of inspiration from major low-cost Western chains that welcome business travelers such as Accor, Ibis and Premier Inns. The competitive nature of China's hotel industry has led to the growth of more low-cost hotels. They all aim to keep everything simple so that customers have plenty to choose from at affordable prices (Tang, 2004). Entrepreneurs, therefore, choose those franchises that stand out to invest more in their rooms thus developing a competitive strategy. this is convenient. China's increasing scale and rate of development over the past two decades has prompted global investors to watch the market with interest. The number of people traveling in and out of China has increased to more than 60 million per year. Therefore, China is currently the largest source of franchise investors in Asia. This implies that international hoteliers are slowly but surely moving into China to tap into the hotel franchising industry (Zhang & Ray Pine, 2005). Accor, for example, has tried to gain a strong position in the Chinese market with the Grand Mercure, known regionally as Mei Jue. Similarly, hotel chain Marriott has devised an investment plan that would see its affiliated hotels double over the years. All of these franchises target the average Chinese traveler in an attempt to win their loyalty. The loyalty that brands struggle to build translates into the loyalty of Asian travelers around the world (Li-Tzang & SooCheong, 2010). However, foreign investors find it difficult to compete with companies like Hantings for the Chinese mid-market. National hotels would find this an interesting dimension to consider when looking to enter into an affiliation with national or international franchises. However, good news would be that with many partners to choose from, the cost of franchising will definitely start to decrease. This apparently favors local brands as they are faster, more convenient and know their Chinese consumers better (Yung, 2007). Value-Added Services Individual hoteliers and their customers have their own expectations when choosing between hotel brands and products. This is based on the relevant historical backgrounds of the parent brands' various business experiences in the past. As a buyer, the independent hotelier seeks maximum value for his intended affiliation. Therefore, they are not limited to low-level satisfaction but to the ultimate joy of the newly acquired agreement (Phillips, 2006). Over the years, Hantings and other franchises have set the benchmark for their partners' services in major Chinese cities. Likewise, Holiday Inn hotels have developed value-added services such as the inclusion of a call center and aChinese language website for potential partners and customers. Currently, Holiday Inn Hotels and Resorts prides itself on being one of the best mid-range hotel brands in China. The emergence of the Chinese Hotel Awards has also influenced the growth and development of franchising such that only the best brands are chosen (Moore, Ratneshwar, & Moore, 2012). High-end hotels like Intercontinental Hotels have also helped provide benchmarks for value-added services in mid-range hotels. Today, mid-market franchises are at their best in ensuring their brand promises are delivered to customers and potential franchisees. After researching the nature of relationships and investments in the Chinese people, potential partners show a strong affinity to further select only those brands that tap and satisfy the demand (JLJ, 2007). Managing and franchising hotels in China proved to be much simpler before the Beijing 2008 Olympic Games there were few choices. However, hotel demand has increased with an increase in room inventory and disposable income. Over time, new hotel chains have emerged which have led to the present of incredible franchises. The most visible factor was operational costs, particularly regarding labor and energy (Tuunanen, 2011). AS these two aspects have grown significantly, they have had a great effect on the nature of the hotel industry. The key challenges in China remain keeping teams adequately motivated and using hotel value-added services to keep them happy. It is a challenge for individual hoteliers to build great relationships with franchises who insist on quality of service and overall hygiene. It seems quite encouraging that individual hoteliers are looking for worthwhile franchises with an excellent work ethic (Su, 2006). Much research and training must be conducted to ascertain each franchise's commitment to success. Beijing, China's second largest city, has seen the rise of new hotels and developments on beaches and luxury areas. The challenging factor remains, however, the competitive environment that has seen the creation of many hotels. This has led to cut-throat competition in value-added services such as extra advertising and room service (Xiao & Wang, 2009). Furthermore, such competition offers franchises the opportunity to reconsider their competitive arrangements on new and innovative products. These pose challenges in hotel management and franchising in China. However, if they manage to obtain the desired partners, hoteliers will be able to provide excellent value-added services that will retain customers (Miles, 2006). Customer Needs China's hotel industry includes many faces. For workers it is a source of employment. For owners, hotels exist as an entire empire that must continue to move forward. For customers it includes everything from beds while traveling to a part of their temporary homes during holidays. While meeting the needs of the public may be difficult, doing so in the hospitality industry comes with its own set of challenges (Noone & Mattila, 2009). In addition to learning the likelihood of providing exceptional customer services, franchisors also look for partners who preach the skills that can meet each customer's needs. Beyond hotel decor and amenities that contribute to satisfying customer needs, nothing should be able to ruin the franchisor experience more than poor customer service from the franchises seeking to host them. In such strategic times, mid-market hoteliers usually discuss the key features of a serviceeffective customers and activities that exceed their customers' expectations (Okoroafo, Koh, & Liu, 2010). They are also concerned with finding out the level to which their franchising decisions may affect their businesses and personal lives. All affiliated parties know that one of the best ways to provide excellent customer service is through effective communication with national customers. As logically, this dimension highlights the need for franchises to develop a diagnostic technique that informs consumers' needs (Qui, 2004). Using this as a guide to select potential partners, franchise hotels do their best to identify their individual communication techniques and those of their customers to achieve the best possible outcome in terms of satisfaction. Based on the form of franchising in question, proponents of such alliances argue that customers are likely to remain allied with brands they feel comfortable with. Therefore, by adopting a franchising approach, individual hotels are equipped with the best workforce that adapts to various changes in customer tastes and preferences. Franchising also allows hotel franchises to adapt more effectively to customers' changing regulatory requirements (Moore, Ratneshwar, & Moore, 2012). Presence of intellectual property rights violations It is the biggest challenge that the Chinese business environment currently faces. The prevalence of intellectual property rights infringements has slowed hotel franchising decision-making. Although clear rules on intellectual property rights have been put in place, their enforcement continues to weaken by the day. The responsibility to explore and monitor various types of trademark violations falls squarely on property owners (WTTC, 2006). Many Chinese hotels have fallen prey to franchise imitators who use logos to attract customers. They find it important to evaluate the authentic details of the franchise before entering into an affiliation. Most big chain brands also encounter many imitators who rake in billions under their brands. Some of these imitators and scammers are usually ex-franchises whose contracts are terminated because they do not meet established standards (Saunders & Riordan, 2009). While trademark registration would not provide most franchisors with recourse arising from IPR infringements, failure to do so would lead to disastrous results. China is known for granting logos and brands on a first-come, first-served basis. This has triggered the existence of scenarios in which individuals register the trademarks of other organizations and demand appropriate fees for their use (Pine, 2003). Individual hotels would like to inform themselves of the existence of such fake franchise agreements to research the best affiliations. It would be important for individual hotels to register their brands, trademarks and domain names before entering into a franchise agreement. They should do the same, including registering patent rights, before entering China's hotel industry (Zhu, 2008). Legal Environment The government's first attempts to develop legal guidelines for franchising in China were the Franchise Rules of 1997. These were issued in 1997 through the Ministry of Commerce then known as the Ministry of Foreign Trade and Economic Cooperation. As hotel companies seeking to enter into franchising would note, the rules appeared to be the first steps in offering guidance for such business models in the new China. Unfortunately, these initial regulations only favored domestic franchises (Li-Tzang & SooCheong, 2010). This, as a result, stalled, 2010)..