Impertinent Questions In Search of Pertinent Answers

Question:   How is it possible that the largest hotel franchise companies can advertise for new franchisees without even mentioning the major issues: territorial protection, termination and windows provisions, liquidated damages, choice of venue, dispute resolution, vendor exclusivity, minimum performance, etc.?

Question: Do Radisson franchisees agree with the Carlson’s “Ambition 2015” campaign which will require them to spend $900 million in the next five years?

Question: In light of one-sided franchise agreements, which are mostly non-negotiable, can any objective-minded hotelier rely on the conclusion reached in a recent Cornell Hospitality Research Brief?: 

Research Question: We investigate brand-specific investments (BSIs) by hotels belonging to two major North American hotel brands and the role these investments play in safeguarding the relationship and creating value for both partners.

Results: Our results show the conditions under which brand-specific investments safeguard the relationship by protecting against opportunism, and enhance a hotel’s performance…..

In summary, the key action implication of the results of this study is that by building closer relationships between hotels and the brands affiliated with them, both benefit because each party acts in the best interests of the relationship leading to higher performance for both.”


About the author: Please take note that Stanley Turkel, MHS, ISHC has just published the book “Great American Hoteliers: Pioneers of the Hotel Industry.” It contains 359 pages, 25 illustrations and 16 chapters devoted to each of the following pioneers: John McEntee Bowman, Carl Graham Fisher, Henry Morrison Flagler, John Q. Hammons, Frederick Henry Harvey. Ernest Henderson, Conrad Nicholson Hilton, Howard Dearing Johnson, J. Willard Marriott, Kanjibhai Patel, Henry Bradley Plant, George Mortimer Pullman, A.M. Sonnabend, Ellsworth Milton Statler, Juan Terry Trippe and Kemmons Wilson. It also has a foreword by Stephen Rushmore, preface, introduction, bibliography and index. Visit www.greatamericanhoteliers.com to order the book.

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Comments

You can open always Independent Hotel

Stan -

You state "How is it possible that the largest hotel franchise companies can advertise for new franchisees without even mentioning the major issues: territorial protection, termination and windows provisions, liquidated damages, choice of venue, dispute resolution, vendor exclusivity, minimum performance, etc.?"

The fact of the matter is that while it is foolish for you to assert that hotel franchisors should "advertise" all the items you describe as objectionable these same franchisors DO disclose all the contractual obligations in their Franchise Disclosure Document in advance of signing a franchise agreement.

I think it is disingenuous of you to suggest that hotel franchisors are withholding required disclosures and you should be ashamed of yourself.

Homer