Updated in
2022
A best-practice approach to designing, developing, and implementing best-in-class, mutually beneficial franchise systems
In 1998, AAHOA identified certain best practices for the hospitality franchise system. AAHOA called those best practices the 12 Points of Fair Franchising (“12 Points”). AAHOA has continuously updated the 12 Points to reflect business changes and the long-term, mutually beneficial relationship between industry Franchisors and Franchisees.
The revised 12 Points continue this mission as an educational primer for hospitality Franchisors and AAHOA Members (current and future hospitality Franchisees) to discuss and use to continue designing, developing, and implementing best-in-class, mutually beneficial franchise systems.
Download Now  12 Points Educational Webinar Series
TERMINATION RIGHTS AND LIQUIDATED DAMAGES
A best-practice approach to voluntary buyout or involuntary termination, liquidated damages, windows provisions, early termination, and Franchisee termination rights
IMPACT, ENCROACHMENT, AND CROSS-BRAND PROTECTION
How to establish a fair and reasonable formula to protect a Franchisee’s assets
MINIMUM PERFORMANCE AND QUALITY GUARANTEES
Minimum brand performance and quality guarantees from franchisors related to public image and reputation
QUALITY ASSURANCE INSPECTIONS AND GUEST SURVEYS
Ensuring consistent, unbiased, and reasonable standards for quality assurance inspections and accuracy of QA reports
VENDOR EXCLUSIVITY, REBATES, AND AFFILIATED COMPANIES AS VENDORS
Ensure competitive pricing
FULL TRANSPARENCY OF FRANCHISEE-FUNDED PROGRAMS AND FEES
The disclosure and accountability for the expenditure of marketing, loyalty, and reservation fees
MAINTAINING AND BUILDING RELATIONSHIPS
Establishing fruitful, long-term business relationships through recognition of value and effective communication
DISPUTE RESOLUTION
Creating a commitment to establish an independent and fair process for the resolution of disputes related to agreements or relationships
VENUE AND CHOICE-OF-LAW CLAUSES
Any party pursuing claims in a court of law should do so in the county and state in which the subject facility is located
FRANCHISE SALES ETHICS AND PRACTICES, PROPER DISCLOSURES
The mandate of fair and honest selling practices among Franchisor salespersons and agents
TRANSFERABILITY
When it comes to transferability, parties should not delay or act unreasonably
SALE OF THE FRANCHISE SYSTEM HOTEL BRAND(S)
Giving notice of a sale to existing Franchisees and pledging to a smooth transition between existing and new Franchisor owners
Download the Updated
Resource
12 Points Resource Guide: An Educational Primer
Download the 12 Points
Questionnaire
12 Points Questionnaire
Industry Partner
The following Industry Partners provide generous ongoing support to AAHOA and our membership. We sincerely appreciate our Industry Partners' contributions to the association and the industry.
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