Hotel Franchise Contract / Agreement

What is the definition of Hotel Franchise Contract / Agreement?

A contract between a hotel possessor and a hotel franchise corporation where the franchise corporation allows a hotel to use its services and name for a fee. Services a franchisor can offer are for example national publicity, reservation system, employee preparation and other profit depending on the hotel franchise corporation. A hotel franchise contract generally lasts 20 years, but depending on the hotel and franchise company the agreement span can from 5 years to, in unusual cases, 100 years.

This contract also needs that the hotel assembles definite standards or admits to positive rules & regulations in order to keep the contract. Examples therefore are that the franchisor needs the hotel to buy furniture from its accepted suppliers, the use of the company’s property management system, franchise inspections for quality of facilities, upgrades to the hotel every few years or decades and other compulsory requests by the franchise corporation.