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Franchisee Hotels

Winstead PC

Incorporating Flag Standards in Hotel Construction Agreements

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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

Lathrop GPM

Ohio Federal Court Rejects Hotel Franchisors’ Pursuit of Indemnification Under Federal Trafficking Statute but Permits State Law...

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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

Lewitt Hackman

Franchisor 101: No Control, No Liability

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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

Lathrop GPM

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

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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

Lewitt Hackman

Franchisor 101: Promises to Prospectives

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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

Lewitt Hackman

Franchisor 101: Waive Before Check Out

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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

Lathrop GPM

The Franchise Memorandum - Issue # 265

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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

Lewitt Hackman

Franchisor 101: Nothing Personal in Claims Against Hotel Franchisor

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A guest sued the Hampton Inn and Suites franchisee in Nashville, Tennessee and the franchisor’s parent company, Hilton Domestic Operating Co., Inc. (“Hilton”), claiming race discrimination by a hotel employee. The plaintiff...more

Carlton Fields

Hotel Franchise Agreements: What Should Owners Focus On?

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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

Lewitt Hackman

Franchisee 101: If it Walks Like a Franchise, Talks Like a Franchise, it Might Be a Franchise

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Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...more

Lewitt Hackman

Franchisee 101: Personal Jurisdiction over Non-Resident Principal in Massachusetts

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In a wrongful death suit by a Massachusetts wife of a man and their child who drowned in a Montreal hotel pool, a Massachusetts federal court held in Nandjou v. Marriott Internationalthat it had jurisdiction under the state...more

Lewitt Hackman

FRANCHISOR 101: Manual Overload

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A franchisor's investment in brand standards, protection and control often comes at a cost when a consumer believing or claiming to believe the franchisor and franchisee are the same, seeks to hold a franchisor liable for a...more

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