As a company whose business is based solely on franchising, Choice Hotels International recognizes the critical need for a strong relationship with its franchisees in order to move the company forward and make it a great investment for all concerned, including our shareholders.
At the heart of a productive franchisor/franchisee relationship is a commitment to building trust and providing strong leadership for the franchise system. By keeping the system dynamic and growing, you add more value to your brands, build franchisee loyalty, and create a more predictable earnings stream for your investors.
Working together with franchisees for more than 60 years, we have created a global system of more than 5,000 hotels in more than 40 countries, operating under 10 great brands. Our more than 2,300 domestic franchisees are part of the great American franchise community that employs more than 18 million Americans in 250,000 individual businesses in more than 70 industries.
What makes franchising so attractive to so many people is that you can build your own business and fortune while relying on the proven brands and marketing strategies of the franchisor. Franchisees are true entrepreneurs who typify the pioneering spirit of America. They value the risk-taking and the intense pride that comes from creating an individual business. What impresses me most about our franchisees is their eagerness to build their own dreams through hard work and a shared commitment to growing a successful franchise system.
The foundation underpinning this commitment is our stated mission, vision and passion, all of which support our franchisees. Our mission is simple: to deliver a franchise success system of strong brands, exceptional services, vast consumer reach and size, scale and distribution that delivers guests, satisfies guests, and reduces cost for our hotel owners. We also clearly state our vision: to deliver the highest return on investment of any hotel franchise. And we back that up with our passion: customer profitability.
Obviously, these can be empty promises without the determination and leadership to deliver on them. All Choice associates know that our success depends directly on our franchisees’ success. The programs and services we design and deliver to franchisees are aimed at keeping them competitive by helping to lower their costs, increase guest satisfaction, and deliver more return to their bottom line. These messages are very well received by our franchisees, as reflected by our ongoing success in retaining franchise contracts and by winning a significant share of new contracts to grow our system and expand the reach of our brands worldwide.
I’ve worked hard to provide leadership by listening intently to our franchisees and by adhering to four key principles. First, demonstrate personal character and integrity. Keep your word, strive for excellence and always take the high road. Second, lead through serving. Seek to inspire and energize people, to liberate them to do what they do best. Look for opportunity where others see trouble. Third, embrace diversity. We all offer different perspectives and strengths. Understand and appreciate gender and cultural differences, and use them to build a greater organization. And, fourth, build trust and values. Foster open, honest communications. Tell people what they need to hear, not what they want to hear. And most importantly, champion innovation and creativity.
By following these hallmarks of leadership, you can create a strong partnership with your franchisees and your associates. And in doing so, you'll provide your shareholders with an investment that delivers true value and a strong, predictable performance over time.
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