People traveling for business and pleasure often seek out hotels with recognizable names and amenities. Owning a hotel franchise can be a lucrative way for an aspiring business owner to meet the needs of travelers while profiting from Americans’ mobility. If you are interested in buying a hotel franchise, there are several issues to consider prior to the purchase. If you already own a hotel franchise and are engaged in a dispute with a franchisor, you may need experienced legal representation in arbitration. I help prospective franchisees as well as existing franchisees throughout either of these two important stages.
Are you interested in buying a hotel franchise? Are you facing a dispute with a franchisor over a franchise agreement or other issue? Contact me, Mario L. Herman, an experienced franchise lawyer, to arrange your consultation.
Hotel chain owners should be particularly concerned with the liquidated damages provision in their franchise contracts. This provision refers to a fixed award to the injured party following a breach contract where damages are difficult to assess. My experience in arbitration, as well as in helping people consider buying a franchise, gives me much insight on liquidated damages issues.
Territorial encroachment is another issue that those potential hotel franchisees should understand. Territorial encroachment may arise when new outlets are authorized too close to an existing operation, and it can occur in the same city, or even on the same street.
Questions about buying or owning a hotel franchise? Contact me today to arrange your consultation.