Fair franchising. It’s a phrase that’s been used countless times in negotiations with brands, at industry conferences and among associations formed to ensure a balance of power between franchisers and franchisees.
As the hotel industry in the U.S. celebrates nearly a decade of growth, leaner times are ahead, say forecasters. Owner operators are cutting as many expenses as they can but seem to be swimming upstream as costs are claiming more and more of their bottom lines.
Among the biggest expenses are franchisee fees, which are growing at a faster pace than room revenue.
Episode 253 of Lodging Leaders is the first in a series that’s exploring the issues brewing in the franchise industry.
To launch the series, Judy Maxwell, co-host of Lodging Leaders, attended Fair Franchising Initiative, a new organization formed to address hotel franchisees’ concerns with the current state of franchising.
Maxwell also interviewed a hotelier leading a petition drive to get AAHOA back to the discussion table with Choice Hotels International.
Featured are Prakash Shah and Anil Patel, president and chairman, respectively, of Fair Franchising Initiative; Keith Miller, principal of Franchisee Advocacy Consulting; and Sagar Shah, a next-generation hotelier who is leading the franchisee petition drive.
Resources and Links
In the introduction of his book, “Hotel, an American History,” A.K. Sandoval-Strausz writes: “The hotel as we know it today did not evolve randomly or naturally, nor did it develop as some sort of automatic response to structural needs. Rather, it was the deliberate creation of an identifiable group of people who lived in a read more
Many companies in the hotel industry claim they practice diversity in their hiring practices. When questioned about how many Black people they employ, most companies can back up their hiring outcomes with data. That’s all well and good, but what’s missing in most employment demographics is a measurement of how inclusive the company is not read more