TRENDING
AAHOA AND MARRIOTT INTERNATIONAL impasse still aflame
STILL NO RESOLUTION BETWEEN THE TWO ORGANIZATIONS OVER “ FAIR FRANCHISING ” AND OTHER MATTERS .
By DAVID EISEN , EDITOR IN CHIEF
In a letter last July , Marriott International , the largest hotel company in the world by number of rooms , outlined its intent to end its longtime relationship with AAHOA in response to the organization ' s " 12 Points of Fair Franchising ," which Marriott said ran counter to its business model and interests . In the aftermath , AAHOA approached Marriott to disarm the volatile situation , but to no avail , according to AAHOA CEO Laura Lee Blake , who spoke exclusively to HOTELS about the stalemate .
At the heart of contention is Marriott ’ s reluctance to support AAHOA fair franchising points , first adopted in 1998 as a blueprint for designing and developing a " mutually beneficial franchise system ." The points cover entities such as liquidated damages , quality guarantees , vendor exclusivity , dispute resolution , franchise sales ethics and choice-of-law clauses .
In addition , Marriott found fault with AAHOA ' s support of a New Jersey franchising bill , which seeks to tighten control over franchisors , including fully disclosing commissions / kickbacks ; restricting vendor exclusivity ; prohibiting fees not disclosed in FDDs ; and
20 hotelsmag . com Mar / Apr 2023