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.

Often, the franchise agreement is presented to proposed franchisees as non-negotiable because, as the argument goes, it is part of the Franchise Disclosure Documents approved by government regulators.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]