June 18, 2025

How Franchising Offers a Scalable Path to STR Success - with Patrick Stewart of Grand Welcome

How Franchising Offers a Scalable Path to STR Success - with Patrick Stewart of Grand Welcome

For many short-term rental (STR) operators, growth can feel like a double-edged sword. As the portfolio expands, so do the demands. There are more guest issues to manage, more tech decisions to make, and more owner relationships to maintain. Eventually, what started as an exciting entrepreneurial venture can start to feel like a constant uphill climb.

In this week’s episode, we sat down with Patrick Stewart, CEO of Grand Welcome, to explore how franchising is becoming a viable, though still underused, strategy for property managers who want to grow with less operational strain.

The Franchise Model: What It Is and What It Isn’t

In traditional franchising, business owners join a system that gives them access to tools, training, and shared brand equity. In the STR space, this model is adapted to fit the unique needs of property managers.

According to Patrick, franchisees at Grand Welcome receive support that includes:

  • A full guest services operation with 24/7 coverage
  • A dedicated revenue management team
  • Tech systems that are evaluated and updated at the corporate level
  • Marketing support based on each operator’s skills and experience
  • Peer groups that share lessons from the field

Operators maintain control of their business while gaining access to a wider support network that is designed to help them grow more efficiently.

“Our goal is to remove the parts of the business that drain you,” Patrick says. “That way, you can focus on the activities that grow your company.”

Why Most Operators Plateau Between 20 and 50 Units

One of the most useful insights from the episode is the idea of the "scaling wall" that many STR operators hit between 20 and 50 properties. At this stage, DIY systems start breaking down. Staff becomes necessary. Owner management takes more time. Even choosing the right software becomes a critical, time-consuming task.

Franchising offers a structure that helps operators move through this stage without sacrificing profitability or burning out. Patrick shares examples of how Grand Welcome franchisees benefit from centralized pricing tools, AI-backed guest screening, vetted vendor partnerships, and dedicated training on owner acquisition and retention.

Growing a Profitable Business, Not Just a Bigger One

Many operators chase growth but struggle with margins. Franchising helps by reducing overhead and improving efficiency. Guest services, pricing, tech support, and even tools for fraud prevention are delivered at scale, which lowers cost while increasing consistency.

The result? Operators can grow without hiring large teams, make smarter pricing decisions, and offer better service to both guests and homeowners.

Franchising Is Not One-Size-Fits-All

Patrick is clear that franchising is not for everyone. The most successful franchisees tend to be those who are growth-minded, open to collaboration, and eager to learn. Grand Welcome provides structure, but operators still have to lead, build relationships, and manage their local market presence.

In markets with regulatory pressure, the company works with franchisees to explore alternate stay models, such as 31-day or mid-term rentals, helping them maintain revenue even when rules change.

A New Way to Think About Scale

Franchising is not the only way to grow in STR. But it is one that offers structure, support, and scalability to operators who may feel stuck trying to do it all on their own.

This episode presents franchising not as a shortcut, but as a model that gives operators room to think long-term. It offers an example of what growth can look like when systems, people, and experience are built into the business from day one.

Watch the full episode here: