Since there are dozens of quality third-party executives competing for opportunities, it is increasingly difficult for brands to secure management contracts. However, by giving an investor the right to convert to a franchise, owners may be inclined to hire a brand manager, as this offers potentially lower fees and the optionality they are looking for. When a party wishes to enter into an agreement with a management company, it must be aware that it is a complex legal and business relationship that requires an understanding of the differences and key priorities between the two parties. Most large operators offer multiple systems/models of agreements; Franchisors will likely want to have the right to apply their current form of franchise agreement at the time of conversion, which is generally acceptable. Brands want consistency in franchise agreements to preserve brand quality, which benefits the entire system. In this article, hotelintel.co advisor and hotel veteran Giovanni Angelini presents a guide to naviging the often ungodly terrain of owner-operator hotel agreements, including management contracts, leases, franchises and others. All this is done in order to coordinate the objectives of the owner and the operator. Manchises are common in China, India and Europe, but still rare here, even though Citymax hotels have publicly announced the launch of Manchises as early as 2014: “Citymax will manage the new property for 3 years completely, define the brand concept, operating procedures, marketing mix and training procedures and manage the hotel…

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