Fair Franchising Is Not An Oxymoron – Part 3

Hotel Interactive, Inc.:

In 1998, the Asian American Hotel Owners Association identified a set of standards called the 12 Points of Fair Franchising by which to judge the actions of franchise companies. Now, 9 years later, AAHOA has updated the 12 points and has embarked on a survey of franchisors to assess their compliance with these fair franchising standards. In this Hotel Interactive article, I highlight Points 3 and 4.

Point 3: Minimum Performance & Quality Guarantees:
Franchisors should issue minimum performance guarantees to franchisees regarding the occupancy levels of their brand name hotels, and the number of reservations that will be delivered through the franchisors’ reservations systems.

Franchisors also should commit to maintaining a certain level of quality in the franchise system, including, for example, the key characteristics of each brand name, the public image and reputation they will develop for each brand name, the minimum number of hotels they will maintain under each brand name, and the amount and type of advertising they will employ for each brand name.

Continue reading Fair Franchising Is Not An Oxymoron: Part 3.

Also read: Fair Franchising Is Not An Oxymoron – Part 1 and Fair Franchising Is Not An Oxymoron – Part 2.