Conversions, Modifies Franchise Agreements
|Birmingham, AL (April 24, 2006) – Key West Inns, a limited-service
hotel chain with locations throughout the southeast, announced, at its
annual 2006 conference, plans to expand the chain by drastically modifying
franchise agreements, royalty fees, adding support staff and lowering reservation
fees. Highlights of the new plan include a new $1.00 per room per day flat
royalty fee, a twelve month license agreement, revenue management support
and low conversion costs.
“We realized that in order to grow the chain, we needed to get innovative and aggressive. We added value to our services by increasing field staff and developing an aggressive revenue management program. With these mechanisms in place, not only are we able to provide additional real value benefits to our franchisees, but we can also beef up our ability and focus on our aggressive growth objectives,” said Neal Jackson, President of Key West Inns, Inc.
Historically, the typical growth pattern and focus of the Key West Inn chain has been through new construction. “We realized that for us to pick up our pace, we not only needed to provide a competitive and attractive franchise program, but we also needed to revisit our policy on accepting conversions. We now have a favorable conversion program for the Key West Inns brand,” said Neal Jackson. Low entry fees, flat on-going royalty fees, annual exit windows and a reasonable PIP (Property Improvement Plan) policy will allow for an easy and affordable Key West Inn conversion.
Along with the financial benefits of the program, is the addition of the Franchisee Success Coach. The F.S.C. visits each Key West Inn a minimum of every 45 days and provides proactive support on revenue management, capital improvement, marketing strategies, and Key West Inn specific front desk and housekeeping training programs. Site visits are less about inspections, and more about ensuring that the property has every resource to sell more rooms and continuously and consistently satisfy the customer. In short, Key West Inns will uniquely focus on the success of each and every one of our valued franchisees.
Key West Inns also provides franchisees a national reservation system featuring seamless GDS connectivity, website promotions, annual conventions, standard architectural plans for new construction, operations manuals, human resource documents, and a “No Mandate" vendor policy.
Key West Inn owner Rick Patel of Tuscumbia, Alabama was integral in
shaping the revised program and welcomed the opportunity to give critical
input. “The honesty and straightforwardness of the all the people at Key
West Inn and the Jackson family makes this chain rare. I liked having a
say in how the new fees were structured and how that structure accommodated
the needs of all the owners. And ultimately, I liked how by listening to
my input we will all make the chain better.”
Key West Inns has built the brand with properties that offer unique architecture and high curb appeal, along with exclusive, themed interiors that create interest and excitement in smaller communities. Standards for quality of rooms, breakfast set up, décor and exterior appearance ensure the quality of the chain. Key West Inns currently has 14 properties across Alabama, Mississippi, Georgia, Tennessee and Florida.
Neal B. Jackson, CHA