FRANCHISE
What We Offer
The franchisor offers, sells and supports franchises for the establishment and operation of brands, which offer customers a full service experience in primary destinations, include restaurant, bar (where legally permitted) and offer amenities such as pool and/or spas.
Training Overview
The franchisor’s hospitality operations training team offers a variety of mandatory and optional training programs, workshops, online training and other training resources.
All personnel employed at the motel in those positions the franchisor designates to receive training must attend and successfully complete the initial training program and other training programs the franchisor may require.
The franchisor will provide training to the general manager in its Hospitality Management Program. This training will be approximately five days long. Required attendees must satisfactorily complete all components (including any pre-course activities or related diagnostic assessments).
For continuing education, the franchisor offers a comprehensive curriculum of motel operations training.
Territory Granted
The franchise is for the development and operation of a single System motel at a specified location.
The standard Franchise Agreement does not provide a protected territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns or from other channels of distribution or competitive brands that the franchisor controls. When business circumstances warrant, however, we may in our sole discretion agree to some measure of territorial protection after considering various relevant factors. If the franchisor agrees to territorial protection, it will not open or license anyone else to open a system hotel within a defined area for a certain period of time.
Territorial protection would not include protection from (i) the establishment of motels, timeshares, vacation or resort properties or other lodging facilities under other brands that the franchisor or its affiliates own, manage or franchise, or (ii) the conversion of another motel to a system motel as a result of an acquisition.
Obligations and Restrictions
Franchisees do not have to participate personally in the direct operation of their motel although the franchisor recommends that they do so.
If franchisees do not personally manage the motel, they must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities to manage the motel. The manager must successfully complete the training program. Franchisees may not offer goods or services in their motel that the franchisor does not authorize.
Franchisees must operate the motel in strict conformity with the standards the franchisor specifies in the Franchise Agreement, its Manual, or otherwise. Franchisees must use the motel premises solely for the operation of a system motel.
Term of Agreement and Renewal
The length of the initial franchise term is:
- 20 years for new construction
- 15 years for conversions and transfers
There are no renewal rights.
Any continuation of the motel’s affiliation with the system is subject to the execution and delivery of the then current form of Franchise Agreement, which may differ materially from the previous agreement.
Financial Assistance
The franchisor may defer payment of the Initial Franchise Fee, if it determines that business circumstances warrant. The deferral is usually for a short term such as 90 days, or until the Motel opens as a member of the System Motel, whichever occurs first.
The franchisor also may offer certain “Development Incentives” for new construction and conversion System Motels. The incentives are based on various factors and are determined in the franchisor’s sole discretion.
Except as specified, the franchisor does not offer or provide any financing arrangements for system franchisees, either directly or indirectly.
