As a result of wide ranging experience in negotiating hotel franchise agreements for many hotel brands and owners, we can help achieve positive results in your approach to franchise opportunities.
Under a hotel franchise agreement the hotel owner acquires the right to use the brand of a national or international hotel group, which grants a licence to the hotel owner on very specific terms. Although hotel franchise agreements are not typically heavily negotiated, and very much favour the brand, there are certain key provisions a well advised hotel owner can make some headway on.
Issues on which you may benefit from expert advice include termination, and reducing potential exposure should the agreement be brought to an end before the term has expired. Negotiation over your capital investment to meet the brand’s standards could be valuable. The appointment of the hotel manager, restrictions over ability to transfer ownership and guarantees over a competing franchise being awarded locally are items to be negotiated before taking on a successful franchise.