Hotels Should Advertise Fair Franchise Points

Heads in the Sand?  In a recent issue of Hotel Business magazine (June 7-20, 2008), large ads appear by the following major franchise companies soliciting new franchisees:

  • Doubletree
  • Embassy Suites Hotels
  • Carlson Hotels Worldwide
  • The Hilton Family
  • La Quinta Inns & Suites
  • Element by Westin

Not one of them mentions any of the issues that are of critical importance to all franchisees: guaranteed areas of protection, annual exit opportunities, termination and liquidated damages, amenity creep, flexible fee structure, choice of venue, etc.

Two other ads by smaller franchise companies also appear in this same issue of Hotel Business.  They are:

  • Guesthouse and Settle Inn
  • Budgetel

These two franchise companies are franchisee-friendly and feature franchise agreements which provide guaranteed areas of protection, annual exit opportunities, flexible fee structures, a voice in brand amenities and other fair franchising arrangements.  

QUESTION: If hotel owners would sign franchise agreements only with those franchise companies who complied with AAHOA's 12 Points of Fair Franchising, how long would it take for the non-compliant companies to change their franchise agreement?

Related readings:

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Stanley Turkel, MHS, ISHC, is a New York-based hotel consultant specializing in hotel franchising issues, asset management and litigation support services. He is also available for due diligence studies for an acquisition, a third-party audit of a marketing or operational problem, an expert review of a management contract or a franchise agreement, or litigation support. Mr. Turkel is a member of the International Society of Hospitality Consultants and can be reached at 917-628-8549 or email at [email protected]

Stanley Turkel is available to speak at your company or organization meetings. His recent speaking engagements include:

  • 2/11/08 Lecture: "How to Become a Great Hotel Consultant" at the NYU Tisch Center for Hospitality Tourism & Sports Mgmt.
  • 3/5/08 Lecture: "Great American Hotels and Hoteliers" at the Harvard Club of New York
  • 3/28/08 Moderator: "Fair Franchising is not an Oxymoron" at the AAHOA Convention in San Antonio
  • 4/3/08 Lecture: "You Are the YMCA: How to Improve Customer Service" at the West Side YMCA
  • 4/7/08 Featured Speaker: "Hotel Franchising in a State of Transition" at the CHOC Owners Summit in Dallas
  • 4/16/08 Lecture: "Great American Hoteliers: Pioneers of the Hotel Industry" at the NYU Osher Institute
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