There are two effective ways to partner with another entity in the travel business: affiliate yourself with a host or own a franchise business. What’s the difference? Chiefly, you own a franchise business. When someone joins a host they create a job for themselves, when they become a franchisee they are building a business for themselves. They’re not just a travel professional they’re an entrepreneur whose business is to sell travel.
The most important point in the franchisee’s success is the basis for the success of the franchisor. Simply put: if you don’t make money, they don’t make money.
Membership-based vs. Success-based business This is another way to spell out the difference between a host and a franchise. The host business model is about memberships to make money; while the franchise opportunity is about success. Your success as an owner means their success as a company. Below are some solid points of differentiation:
- You own a franchise business.
- It’s regulated by the Federal Trade Commission (FTC). You receive full details and financial information about the business.
- You have the power of brand recognition and the ability to advertise and represent yourself with that brand name.
- The royalties paid are based solely on what you sell and go to support the infrastructure of the franchise home office.
- You have the use of proven systems to guide you and your business.
- You are a member of their organization.
- You don’t own the business or your client list.
- It is not regulated by the FTC. They do not have to disclose any business information to you before you join.
- You are not to use the host name to represent yourself or your services.
It’s why at Cruise Planners/American Express our motto is “You’re in business for yourself, never by yourself.”