ATLANTA, Ga., May 24 – The Asian American Hotel Owners Association (AAHOA), the largest hotel owners association in the world, released a new informational video about its 4 Pillars for Franchise Advocacy to advance AAHOA’s mission as the foremost resource and advocate for America’s hotel owners. These 4 Pillars for Franchise Advocacy represent the primary issues for which AAHOA advocates on behalf of member-hoteliers.
The 4 Pillars for Franchise Advocacy are:
- Mandated Vendors: Limiting brands from mandating specific vendors to encourage competitive pricing. However, brands can control lists of approved vendors to ensure compliance with brand and product standards, especially when items are trademarked
- Rebates: Fully disclosing all vendor rebates, and returning them to the franchisees for the betterment of the system
- Loyalty Programs: Fairly compensating franchisees for all loyalty program discounted sales and free reward nights; and
- New Fees: Avoiding unilaterally imposed and arbitrary franchise fees without proper disclosure and approval
The 4 Pillars for Franchise Advocacy is the basis upon which AAHOA advocates for hoteliers in a changing franchise dynamic, through forums such as the Federal Trade Commission (FTC). As a current example, the 4 Pillars also serve as a guiding directive for AAHOA’s support of current legislation regarding hotel franchising in New Jersey.
“Franchisors and franchisees depend on each other for success, but neither one should be subordinate to the other,” said AAHOA Chairman Bharat Patel. “These two groups will always have different objectives and differences of opinions. But owners and brands must work together as close business partners. And it’s why AAHOA will continue to work proactively for a smarter, better, and more balanced franchise relationship.”
For more than two decades, AAHOA has been championing fair franchising initiatives, especially as it relates to its educational primer, AAHOA’s 12 Points of Fair Franchising, which serves as a important educational resource to assist members with better understanding the terms of their franchise agreements and relationships with franchisors. AAHOA underscored the educational aspects of the 12 Points with its recent educational webinar series related to each of the 12 Points of Fair Franchising.