LODGING LEADERS

253 | Franchising Report Part 1 – Power Struggle: New hotelier organization lobbies for franchisee protection

LODGING LEADERS

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.

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