3 Key Takeaways | Is Franchising Doomed? The 2024 Version
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Is Franchising Doomed?
Strategies for Negotiating with a Franchisee and Franchisor
Before committing to a franchise business, consider...
Hotel owners have many considerations when choosing between a franchise agreement or a management agreement with a hotel brand, most crucially factors such as how much control and flexibility an owner wishes to maintain...more
Constructing a hotel is a complex endeavor that requires meticulous planning and execution to meet the expectations of both the developer and the flag. One of the critical aspects of this process is ensuring that the...more
A hotel comfort letter is a document issued by a hotel franchisor to a lender when a hotel owner (the borrower) seeks financing. It provides the lender with assurances about the relationship between the franchisor, borrower,...more
A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more
A federal court in Ohio recently narrowed two hotel franchisors’ attempt to implead their franchisee in a lawsuit under the Trafficking Victims Protection Reauthorization Act (TVPRA). A.S. v. Red Roof Inns, Inc., 2024 WL...more
A California federal court granted summary judgment in favor of Red Roof Inns, a hotel franchisor, on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act, or TVPRA....more
Welcome to the third edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more
A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more
Welcome to the second edition of The Leisure Law Insider! It will be released quarterly, covering the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising,...more
The financing of hotels and resorts requires balancing the borrower’s need for flexibility to successfully operate the hotel against the lender’s desire to prevent cash leakage should conditions related to the borrower’s...more
A federal district court in New Jersey denied Travelodge Hotels’ motion for partial summary judgment against a former franchisee, holding there are genuine issues of fact as to Travelodge’s breach of contract claims....more
A Georgia district court declined to dismiss a breach of contract case by a hotel franchisor against a franchisee. The court rejected the franchisee’s argument that the franchisor waived its rights under the parties’ license...more
With government support instigated by the Covid-19 pandemic coming to an end, there is an inevitability that some hotel owners will sadly not have the liquidity to continue to operate in the medium term. Eager investors are...more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more
Why Achieving Consensus is the Best Path to Preserving the Flag - Hotel owners, operators, and franchisors battling the impact of COVID-19 may need to consider whether chapter 11 of the Bankruptcy Code can deliver a...more
The global COVID-19 pandemic has devastated the hospitality industry. Hotel occupancy rates have fallen greatly in many markets, with employee layoffs and property closures affecting even the largest and otherwise best...more
The hospitality industry is being devastated by the impact of the coronavirus outbreak. As social distancing is becoming the new normal, airlines cancel flights and state and local governments impose travel restrictions and...more
Whether you are considering developing a hotel or acquiring a hotel, in order to maximize your revenue per available room (and obtain capital investors and financing), you are likely to turn to one of the major hotel brands...more
Plaintiff Choice Hotels International Inc. filed an application to confirm arbitration award and a motion for default judgment against a fanchisee company and its owner in connection with an arbitration initiated before the...more
Despite growing international awareness and legislation, the hotel industry remains a hot spot for human rights abuses due to the nature of the industry and the franchise system. ...more
Among the things that are the most exciting about being an intellectual property practitioner working in the hospitality industry are the variety and wide breadth of legal issues that need to be addressed. We are...more
For more than 10 years, the Mexican hospitality market has been gaining a world-wide position. In 2017, Mexico experienced a record hotel sector revenue of net $21.3 billion, up 8.3% from 2016, and an increase in hospitality...more
Hospitality facilities built in the 1980s or 1990s (or earlier) tend to have design and layout configurations that are out of touch with a franchisor’s present market requirements. This jeopardizes the continued franchise...more
There is a widespread assumption that brand franchise agreements are not negotiable. This assumption is so prevalent that many real estate investors will devote substantial effort to negotiating the terms of a hotel purchase...more
Choice Hotels filed an application to confirm an arbitration award of over $247,000 for the alleged breach of a franchise agreement by two defendants, which failed to timely commence construction of a hotel. The defendants...more