

Please note that the study results are not indicative of the impact an individual brand may have on a hotel’s overall profitability because only the costs, and not the benefits of the franchise affiliations, have been analyzed. Furthermore, the study does not reflect, nor does it claim to address, operating results of any one brand or any particular brand affiliation upon any single hotel property. The 2019 U.S. Franchise Fee Guide is meant to illustrate a basic comparison among franchise fees charged by participants.
HVS has extensive experience with assisting clients in selecting the appropriate franchise and/or management brand for their proposed or existing hotels. This service also includes assisting with or managing the negotiations in coordination with experienced attorneys and other industry professionals.
Historically, this guide subjected each brand’s criteria to a broader and more uniform set of assumptions. However, the 2018 guide and subsequent updates have been reengineered to consider each brand’s own unique set of variables.
HVS collected the franchise disclosure documents (FDDs) from 73 hotel brands and then analyzed the sections pertaining to the costs associated with being a franchisee. Since the Federal Trade Commission regulates the sale of franchises, information regarding each franchise fee structure is readily available through these disclosure documents. For purposes of this study, FDDs published in 2019 for all brands represented herein were collected and reviewed. Franchisors must reveal and adhere to all terms of the franchise agreement as set forth in these documents, thereby eliminating (in theory) the potential for introducing variables in any individual contract. Only mandatory and quantified fees were included in this study, and each of these was categorized as one of the following:

Source: HVS
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