Monthly Archives: July 2023
Like all industries, franchisor-franchisee relationships in the hotel industry often lead to disputes. Franchisors often over-promise and under-deliver, and franchisees often find themselves struggling to remain solvent due to factors beyond their control.
The lodging industry is booming. Even with a slowdown caused by the COVID-19 pandemic, the lodging industry in the United States has experienced an average growth of 7.1 percent per year since 2018. As more people continue to travel both to and within the U.S., the industry appears poised for long-term growth as well.
Franchisors use a variety of tools and tricks to attract high-quality candidates for franchise ownership. Recently, we have seen a trend toward franchisors offering various types of incentives. While these incentives are typically financial in nature, they take a variety of different forms—and they also come with a variety of caveats and conditions.