INTRODUCTION

1.1 Background of the Study

The coming of the railway engine brought about Nigeria caterers

which was originally meant to operate catering services on the

Nigerian railway train consisting of a restaurant and bar on the two

(2) ways services between Lagos Kano and Maidugiri. Due to

increased rate of business travels train service later develop into

rest houses which had 5-10 rooms (chalets).

The Kano railway guest house for the Nigerian railway was

managed by the Nigerian railway. Caterers for a fee per annum

and a share of the annual profit. Most of these hotels were initially

built for prestigious reasons especially for any important national

events attracting both local and foreign visitors. For example

Durbar Hotels in Kaduna and Lagos were established during the

festival of Arts and culture which held on February 1977 as visitors

and dignitaries from all over the world were expected and had to

be lodged in the hotel. There are many hotels of different

standards which were built by both the private and public sectors

all over the country then. Due to increase in awareness of the

economic importance of the hotel industries and tourism activities.

In Kaduna being the former seat of government of the northern

Nigeria the northern government established guest houses. In the

north Hamdala hotel was built and later Arewa hotels

development limited was made responsible for managing these

chains of hotel. In Lagos Kano and Kaduna. Ikoyi hotels Durbar

hotel and Kano central hotel was managed by the Nigerian hotel

limited under a chain (Hospitality Pilot Journal June 1977).

In 1985 the Nigerian hotel industry witnessed the emergence of a

new system of management of the hotel business. By 1990

Sheraton international which is a franchise company come to

manage Sheraton Hotel and Tower Company in Abuja on a

franchise contract.

In 1987 Hilton international is another networking business

company came into Nigeria on a franchise agreement to also

manage a hotel in Abuja Nicon Noga (Nigerian Insurance

Company and Hilton International) is a name to reckon with in the

industry in the world at large. The name attract respect and trust of

all guest and therefore enjoy a lot of patronage locally and

internationally guest will pay anything to be in secured service of

these name and hotels.

Twenty seven (27) years after the introduction of franchise in

(Nigeria and other international hotels) few hotels operate within

the networking system with international and local franchising

company. Example Sheraton Abuja Sheraton Lagos Capital

Hotel Abuja Hilton Abuja Nanet Hotel Gombe Jewel Hotel in

Kaduna and Abuja and Nicon Noga (Nigerian Insurance Company

and Hilton International) Abuja and one of the fast food business

(Mr. Biggs).

There are varieties of hospitality industries that help to increase

and improve the economy of the nation and also help to create

bilateral relationship with other nations all over the world. The

hospitality industry helps to provide accommodation and foods and

beverages and social centers for tourism attraction. Examples of

these are:

- Hotels

- Motels

- Restaurants and bars

- Coffee shops

- Cafeterias

- Fast food eateries

- Night clubs

- Cinema

- Tourism attraction centres

- Clubs

- Gymnasium

- Outdoor catering

- Transport catering etc.

1.2 Statement of Research Problem

The statements of research problem are highly associated with

franchise business in the hospitality industries.

● Most small hotel businesses cannot meet up with the required

amount policy and standard demanded by the franchisor or

franchise companies.

● The hotel owners and franchise company both depend on one

another to stay and progress in the business both local and

international standards.

1.3 Objective of Study

The aim of this study is to investigate the role of franchising on the

hotel business in Kaduna and Abuja metropolis.

1. To identify the role of franchise in the hospitality industry

2. To understand the benefits and challenges of franchising in

hospitality industry

3. To identify the key players and strategies for franchising

4. To know the concept of franchising company

5. To understand the legal implication involved in franchising

1.4 Significance of the Study

- The significance of this study will be tremendous benefit to the

hospitality industry in Nigeria.

- The identification and evaluation of problems and solutions

made from this research work will provide a blue print in either

improving or discharging the level of franchise on the hotel

business in Kaduna and Abuja.

- This research work will also be significance to the academic

institution in view of the fact it will contribute immensely to

expansion of knowledge and general learning.

1.5 Scope of the Study

There exists numerous write-up on franchise in hospitality industry.

As a result of this the researcher is concerned with the concept of

franchising and its role in the hospitality industry in Kaduna

metropolis and FCT Abuja.

1.6 Research Question

1. What are the roles of franchise in the hospitality industry?

2. What are the benefits and challenges of franchising in

hospitality industry?

3. Who are the key players and what are the strategies for

franchising?

4. What is the concept of franchising company?

5. What is the legal implication involved in franchising?