Fair Franchising: The Next Step Toward Real Transparency and Accountability
Summary:
Owners still face unclear fees and limited access to information
Transparency helps owners plan and protects long-term value
Fairness in franchising needs real accountability and better reporting
AAHOA can strengthen systems through auditing, disclosure, and data access
I want fairness to work in practice, not just on paper
For years, hotel owners have talked about fair franchising. We have made progress, but many owners still run into the same issues: unclear fees, missing information, and systems that are hard to verify. Fairness matters when it shows up in contracts, relationships, and daily operations.
Where Fairness Still Falls Short
Owners across the country still report issues that limit their ability to operate with confidence. These include unclear vendor programs, loyalty fees that do not match reimbursements, and new charges that do not come with clear explanations. Mandated suppliers sometimes offer prices that are not tested against the open market.
AAHOA’s 12 Points of Fair Franchising set the right direction, yet owners often lack access to the information needed to ensure those principles work as intended. Owners should be able to see how their money moves through the system, from vendor rebates to marketing funds.
How Hidden Costs Affect Owners
Some vendor programs include extra administrative fees that show up after the fact. Loyalty reimbursements may not cover the real cost of a redemption stay. These gaps reduce margin and limit an owner’s ability to plan for staffing, upgrades, and long-term reinvestment.
Clear accounting supports strong performance. When owners understand the true cost of programs and fees, they can better manage their business.
What Accountability Can Look Like
Stronger fairness starts with simple, practical steps:
Independent auditing
A third party can review vendor relationships and rebate flows. AAHOA can share anonymized reports so owners understand market pricing.
Standard rebate reports
Franchisors should provide yearly, auditable statements that show how rebates are collected and used.
Franchisee data access
Owners should have access to a secure dashboard to view fees, reimbursements, and cost benchmarks for their property.
Model law expansion
The New Jersey Franchise Practices Act offers a path forward. It supports good-cause standards and clearer contract protections.
How I Approach This Work
I have spent more than four decades building hotels and working with the same systems owners face today. As Regional Director, I pushed for translated training materials, more clarity around vendor programs, and stronger conversations with franchisors.
As Secretary, my focus would be simple:
Advocate to set clear vendor disclosure standards
Support rebate audits tied to ethics
Report member savings created through advocacy
Why This Matters for Everyone
Strong systems help owners, brands, guests, and communities. When information is clear and accountability is shared, trust grows and hotels perform better.
Fairness built this association. Transparency keeps it strong.
