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Franchising is a business relationship whereby a franchisor permits a franchisee to use their brand name, product or system of business in a specified and ongoing manner in return for a fee. The definition of franchising can be upgraded to incorporate psychological issues. This proposed definition will be used as a working definition for the purpose of this study: Hotel franchising is an agreement between the holder of a brand (franchisor) and another partner (franchisee), consisting of a written agreement providing the franchisee the rights to use the franchisor’s brand name in return for the payment of a fee and an unwritten agreement of the psychological contract which consists of unwritten promises and obligations between both parties.
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