Why you must read the fine print of your franchise contract.
Jitu Ishwar moved from Mumbai in 1996 and devoted himself to success in the hotel industry. Now he owns three franchises in California: Holiday Inn Express, Marriott’s Fairfield Inn & Suites, and Super 8. All located in Ukiah, Calif., they bring in around $3 million in revenues, with about 30 employees in total.
How did being an immigrant help you?
Our culture emphasizes helping each other out. As a result, we got a lot of support from friends and family. Now I help out people who have come here after me with finding the right business, running it, getting a bank loan. I’ll give a recommendation to the bank for someone who’s new. I’ll tell them I know this guy. I vouch for him.
Our culture emphasizes helping each other out. As a result, we got a lot of support from friends and family.
How did franchising help you realize your goals?
With a franchise, you have a name that is recognized. You pay for it, but in return, you get a brand that everybody respects. And people know what to expect. If you go to a Starbucks in California or Texas, you are aware of exactly what you will get. It’s the same with a hotel. Across the country, people know what kind of service they will get. It helps a lot.
How did the company help?
All the companies have teams that help with finding the right property, marketing, training—all those things that an individual on his own wouldn’t have access to. With a franchise, the resources are all there.
If you go to a Starbucks in California or Texas, you are aware of exactly what you will get. It’s the same with a hotel. Across the country, people know what kind of service they will get. It helps a lot.
What advice would you give immigrants who want to be a franchise owner?
Sometimes people don’t see the reason to pay those franchise fees. But you get a lot in return.
Read the contract carefully. It has everything, from your territory, to fees. Also, you may be able to ask for a marketing study
What’s the best way to evaluate a franchise opportunity?
Read the contract carefully. It has everything, from your territory, to fees. Also, you may be able to ask for a marketing study. The company will study the property you want to buy to see what kind of traffic is there, the type of clients. It will show you whether or not you should consider that location.
If you’re buying a hotel, you have to make sure you’re buying a franchise that’s in the right location. I have three different franchises. The right place for a Super 8 isn’t the best place for a Marriott.
