ATLANTA, GA – Leaders of the Asian American Resort House owners Affiliation (AAHOA), the biggest lodge house owners affiliation on the earth, have been joined by two peer associations, the American Affiliation of Franchisees and Sellers (AAFD), and the Coalition of Franchisee Associations (CFA), to debate the state of Honest Franchising with the honorable Federal Commerce Fee (FTC) Chair, Lina Khan. With illustration from practically 100,000 franchisees and enterprise house owners, the digital assembly supplied an vital discussion board to debate the state of franchising and the way equity and oversight may be improved by schooling and advocacy.
The FTC joined the discussion board as a part of its fact-finding mission to study extra about how franchisors disclose sure features and contractual phrases of the franchise relationship. The FTC can be looking for details about the scope, software, and impact of these features and contractual phrases on each franchisors and franchisees, together with lodge house owners, and whether or not there’s transparency and equity within the course of.
FTC Chair Khan mentioned the function of the Fee in addressing franchisee-franchisor contractual provisions on non-competes. She highlighted the Robinson-Patman Act, a regulation that has seen a scarcity of enforcement lately. The regulation requires all sellers, on this case the franchisor, to deal with franchisees in the identical approach.
“The Robinson Patman regulation prohibits, amongst different issues, business bribery or kickbacks,” stated FTC Chair Lina Khan. “It is a statute that sadly has additionally been dormant for some a long time. It should have implications for all types of enterprise relationships, however the franchisee franchisor relationship can be one space the place Robinson Patman may apply.”
With AAHOA’s practically 20,000 Members proudly owning greater than 60% of all motels throughout the U.S., AAHOA Members acknowledge the significance of sustaining and enhancing the franchising relationship. In the course of the FTC discussion board, AAHOA Officers emphasised the necessity for 4 core pillars for lodge business franchisees:
- Totally disclosing the tens of thousands and thousands of {dollars} in vendor rebates derived from hotelier franchisee purchases, and returning them to the franchisees for the betterment of the system
- Pretty compensating franchisees for all loyalty program discounted gross sales and free reward nights
- Limiting mandated distributors for non-trademarked merchandise to encourage truthful pricing and competitors, and
- Avoiding unilaterally imposed and arbitrary franchise charges with out correct disclosure and approval
The FTC’s said targets of transparency and equity are music to the ears of all franchisees who discover themselves in one-sided, imbalanced and inequitable relationships with their franchisors. Regrettably, many hotelier franchisees are caught in 20-year franchise agreements, they usually can’t voluntarily go away as a result of the liquidated damages would price them a whole bunch of 1000’s of {dollars}. We really thank the FTC and Chair Lina Khan for listening to those points and paying shut consideration to how franchising is at the moment being operated. AAHOA President & CEO Laura Lee Blake
For AAHOA, every of our Officers participated within the FTC discussion board as a result of truthful franchising represents a balanced and clear enterprise relationship between franchisors and franchisees, with clear and affordable phrases for each events. With out transparency and equity, the franchise system can’t be sustained for the long run for our youngsters and the subsequent technology of hoteliers. We strongly help a tradition of fairness and collaboration that pulls proficient entrepreneurs and promotes mutual success. AAHOA Chairman Bharat Patel
AAHOA’s 4 pillars are specifically designed to make sure a mutually helpful relationship between franchisors and franchisees, constructed on belief and equity. By following these tips, AAHOA submits that franchisors can create a thriving system that fosters a greater local weather for small companies and entrepreneurs, in addition to franchisors.
As a corporation dedicated to transparency and fairness, AAHOA invitations different business leaders to hitch us in championing the ideas of Honest Franchising and constructing a brighter future for franchisors and franchisees alike.
About AAHOA
AAHOA is the biggest lodge house owners affiliation within the nation, with Member-owned properties representing a big a part of the U.S. financial system. AAHOA’s 20,000 members personal 60% of the motels in the US and are accountable for 1.7% of the nation’s GDP. Multiple million workers work at AAHOA member-owned motels, incomes $47 billion yearly, and member-owned motels help 4.2 million U.S. jobs throughout all sectors of the hospitality business. AAHOA’s mission is to advance and shield the enterprise pursuits of lodge house owners by advocacy, business management, skilled improvement, member advantages, and group engagement.