Staff Writer - Stay Express World Wide

Exploitative Practices Brands Use In Hotel Franchising Industry

Below is a list of 25 potentially exploitative practices that some franchisors or brands might use in the hotel franchising industry: Excessive Franchise Fees: Imposing high initial franchise fees and ongoing royalty payments that disproportionately burden franchisees. Unreasonable Renewal Fees: Charging exorbitant fees when franchise agreements come up for renewal. Mandatory Exclusive Suppliers: Requiring franchisees to purchase goods and services […]

Hospitality Industry 0 2 min read

Exploitation In Hotel Franchising Industry – Imposing Unreasonable Standards

Franchisors in the hotel industry may exploit franchisees by imposing overly stringent or unreasonable operating standards. While franchise agreements typically include certain standards to maintain brand consistency and quality, there are cases where these requirements become burdensome or disproportionate. Here are ways in which franchisors may exploit hotels through such standards: Excessive Costs: Franchisors may mandate specific equipment, amenities, or […]

Stay Express Hotel Franchise 0 1 min read

What is Predatory Pricing In the Hotel Franchising Industry

Predatory pricing in the hotel franchising industry refers to a strategy where a dominant hotel franchisor deliberately sets its prices for franchise fees, services, or other related charges at an artificially low level. The primary goal of predatory pricing is to drive competitors, especially smaller or newer franchises, out of the market. Once these competitors are weakened or forced out, […]

Hospitality Industry 0 1 min read

Difficulties for Small Hotels To Survive in Intensely Competitive Hospitality Industry

Surviving in the hotel industry as a small, inexperienced hotel without a significant budget can be particularly challenging. Several factors contribute to the difficulties small hotels may face: Intense Competition: Market Saturation: In many locations, the hotel industry can be oversaturated, leading to intense competition. Large hotel chains and established brands may dominate the market, making it challenging for small […]

Hotel Success 0 2 min read

List of Malpractices Within the Hotel Franchising Industry

While malpractices can vary, here is a list of 25 potential malpractices that may occur in the hospitality franchising industry: Hidden Fees: Franchisors may introduce undisclosed fees or charges, leading to unexpected financial burdens for franchisees. Unfair Fee Increases: Franchisors might implement excessive and unjustified increases in royalty fees, marketing fees, or other charges. Predatory Pricing: Franchisors may force franchisees […]

Hospitality Industry 0 2 min read

Franchisee Hotel Exploitation by Big Brands – Forcing Them to Buy from Selected Vendors

Exploitation of franchisee hotels by forcing them to buy from specific vendors for the benefit of the brand is a serious concern in the franchise industry. Here are some ways in which this exploitation can occur: Tied Supplier Agreements: Franchisors may enter into exclusive agreements with specific suppliers and require franchisees to purchase goods and services only from these suppliers. […]

Hospitality Industry 0 1 min read

Conflict of Interest Between Hotel Brands and Franchisees Explained

A conflict of interest in hotel franchising arises when the interests of the franchisor (the brand owner) and the franchisee (the individual or entity operating the hotel under the brand) diverge or potentially clash. Here are several aspects of conflict of interest in hotel franchising: Fee Structure: Franchisors typically charge various fees, including initial franchise fees, ongoing royalties, and marketing […]

Hospitality Industry 0 1 min read

How Dishonest Brands May Cheat Franchisee Hotels

It is important to note that not all franchise brands engage in dishonest practices, and many operate with integrity. However, like any business relationship, conflicts and issues can arise. Here are 10 potential ways hotels may feel cheated by franchise brands: Excessive Fees: Franchise brands may impose high fees for various services, including marketing, reservation systems, and ongoing support. Some […]

Stay Express Hotel Franchise 0 1 min read

Fair Hotel Franchising Can Be a Win-Win For Both Hotels and Brands

Fair, transparent franchising in hotels can be a win-win for both franchisor brand and franchisee hotels and can lead to the growth and profitability of both: Mutual Trust and Long-Term Commitment: Fair and transparent franchising establishes a foundation of trust between the franchisor brand and franchisee hotels. When both parties feel that the terms of the agreement are just and […]

Hotel Tips 0 1 min read

The Importance of Fair Hotel Franchising In the Modern Age

In the complex world of the hotel industry, where partnerships between franchisees and franchisors shape the landscape, the call for fair hotel franchising is becoming increasingly imperative. Fairness in these agreements not only benefits the franchisees but also establishes a foundation for sustainable and mutually beneficial relationships. Let’s delve into the critical need for fair hotel franchising and why it […]

Hotel Success 0 2 min read

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