A Stronger AAHOA Starts with Fairness
When hotel owners talk about “fairness,” we’re not being abstract. We mean clear contracts, transparent fees, honest accounting of rebates and loyalty costs, and rules that treat franchisees like partners. Fairness is the foundation of a healthy franchise system, and it’s the surest path to a stronger AAHOA.
The Foundation: 12 Points of Fair Franchising
AAHOA has articulated this for years through its 12 Points of Fair Franchising, calling for transparency around franchisee-funded programs (marketing, loyalty, reservations), competitive vendor pricing, and visibility into rebates and affiliated supplier relationships.
These points are practical safeguards that keep owners solvent and brands trustworthy. When fees and vendor arrangements are fully disclosed and independently benchmarked, owners can plan, invest, and grow with confidence.
Legal Protections That Promote Fairness
State-Level Guidance
The New Jersey Franchise Practices Act—often cited as a model—requires “good cause” for termination or non-renewal, a basic fairness principle that prevents arbitrary actions that can devastate a family business. Strong relationship laws don’t punish good franchisors; they protect the entire system by elevating standards everyone can live with.
Federal-Level Transparency
Federal rules underscore the transparency theme. The FTC’s Franchise Rule mandates plain-English disclosure of material facts in the Franchise Disclosure Document (FDD), including Item 8 details about mandated or “source-specific” purchasing, from the franchisor, its affiliates, or approved vendors.
Clear Item 8 disclosures (and accountability for associated rebates) help owners understand the real cost of doing business and push systems to compete on value, not opacity.
Two Areas That Urgently Need Daylight
1. Loyalty Program Economics
Owners often shoulder loyalty fees plus the costs of elite benefits and point redemptions, sometimes with reimbursement rates far below market value. Transparent accounting and fair reimbursement rules can align brand promises with owner realities.
2. OTA Dependency Costs
OTAs can fill rooms, but commission ranges of 10–30% erode margins and siphon reinvestment. Fairness means leveraging AAHOA’s scale to reduce dependence on high-cost channels, negotiate smarter partnerships, and champion direct-booking tools that keep more dollars with owners.
Leadership Committed to Fairness
This is why MZ Patel’s platform centers on fair franchise practices, profitability protection, stronger vendor partnerships, and member-first education.
His record backs it up: decades as a multi-state owner and operator, leadership as AAHOA Mid-Atlantic Regional Director and longtime Ambassador, and tangible wins such as expanding language access for training and pushing for fair-practice models.
He’s advocated the very reforms—rebate transparency, mandated-vendor accountability, fair loyalty economics—that AAHOA Members have been asking for.
Fairness Strengthens the Whole System
Transparent programs build trust, and trust drives compliance, consistency, and long-term growth.
When owners see where every fee goes, when rebates support system-wide marketing or reduced royalties (as AAHOA recommends), and when vendor lists are chosen for value—not affiliation—everyone wins: guests, brands, and the families who signed the franchise agreements.
Standing Together for a Stronger Future
AAHOA’s strength has always come from owners standing together for common-sense standards.
Let’s keep pushing for clear disclosures, fair reimbursements, competitive vendor markets, and relationship protections that respect the businesses we’ve built.
