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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 federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more
A federal court in California recently granted summary judgment in favor of a hotel franchisor on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA). J.M. v. Red Roof Inns,...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
At the beginning of 2023, our real estate subsector leaders shared their insights on what headwinds and tailwinds they expected for the industry in the coming year. As a follow-up retrospective, we asked the subsector leaders...more
Just prior to Memorial Day, the New Jersey Assembly passed legislation intending to bring more balance between hotel franchisors and franchisees. As a supplement to the New Jersey Franchise Practices Act, the new legislation...more
The California Court of Appeal (Second Appellate District) published a landmark decision on April 7, 2023, that may have significant implications for the property tax assessments of qualifying California hospitality assets...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
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
As I was checking my wife and myself into a nearby beach town resort during a recent spontaneous trip, I wondered when the smiling gentleman behind the counter would present me with the hotel’s CCPA notice. I am referring, of...more
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
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
Global growth opportunities - In recent years, most of the major US-based hotel brands have sought growth opportunities abroad, particularly in emerging market locations. These opportunities may come in the form of...more
Analysts predict robots may take nearly 40 percent of U.S. jobs – particularly the ones that require lower education levels – in the next 15-20 years. The study was released by PricewaterhouseCoopers, and was based on...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
Hotels differ from other types of stabilized properties in several major ways. The purpose of this article is to highlight how the distinguishing factors impact the way that owners and lenders approach the negotiation of key...more
The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more
New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more
While asset-light strategies have been used for decades in the hotel industry, the strategy and how to implement it are a bit more complicated in the development space, whether for a hotel or time-share company. A typical...more
While asset-light strategies have been utilized for decades in the hotel industry, the strategy and how to implement it are a bit more complicated in the development space, whether for a hotel or time-share company. A typical...more
May 2015 was one of the busiest months for independent contractor (IC) misclassification cases in the courts and administrative agencies – no less than a dozen cases including such well-known companies as BMW, the NFL and...more
In This Issue: - The Next Hot Trend in Economic Development: Craft Beer - Class Action Attempt to Void Jimmy John’s Non-Competes Goes Stale - Use of Customer Survey Data Upheld in Hotel Franchise...more
In most cases, courts and state legislatures have made it more difficult for franchisors to terminate franchise agreements. However, one federal court in New York recently upheld the use of negative guest satisfaction surveys...more
Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more