AAHOA Needs to Level the Playing Field
Contrary to the position of Hotel Business magazine (June 7, 2012), which urged AAHOA to "back off the criticism of brand executives", I believe that AAHOA needs to push harder to overcome the sharply one-sided franchisor advantage.
Just in case you need substantiation of this position, take special notice of the typical franchise agreement in which most hotel franchisors, in addition to nonnegotiable termination and encroachment positions, have the ultimate power to arbitrarily:
- impose higher fees
- grant new franchises (similar or sister brands) anywhere at its sole discretion
- impose new physical and design requirements
- mandate sole - source procurement
- reduce service to franchisees
- sell, merge or consolidate the franchise organization
- impose exorbitant liquidated damages in the event of termination
- restrict a franchise owner's freedom to sell his or her property
- require personal guarantees from owners of franchised hotels
- sell market data, including the names, addresses and preferences of millions of hotel guests
- control the membership and agenda of the in - house franchise advisory council
- expand marketing and reservations funds without an independent audit and full disclosure
- change rules regarding training, technology upgrades, frequency programs, guest discounts, required franchisee services, quality standards, etc.
Impertinent Question: Given these circumstances, shouldn't AAHOA intensify its criticism of brand executives?