Credit: Vlad Kochelaevskiy/Adobe Stock Hotel Franchises: A Potential Shift in Power?
After establishing that the relationship between franchisor and franchisee is inherently imbalanced, this Todd Soloway and Bryan Mohler discuss recent efforts by a group of franchisees seeking to level the playing field through the legislative process, including a bill currently pending in New Jersey that seeks to codify certain protections for hotel franchisees.
April 11, 2023 at 10:00 AM
7 minute read
There are few commercial relationships with a more inherent imbalance of power than that of a franchisor and franchisee. In the hotel industry, franchisors possess the intellectual property in the form of the brand name, the marketing power, and the reservation systems sought by the franchisees, and therefore can demand highly favorable terms in exchange for allowing a franchisee to be part of the brand's system.
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