The franchise agreement is a legal licensing agreement between the hotel brand and the hotel owner, which gives the hotel owner the rights and obligations to operate the hotel under the franchiser`s brand for a fee. Although the type of agreement chosen is important for the hotel group, it has no impact on customers. Based on the application of brand standards, they have the same experience, whether they stay in a franchise hotel or a hotel run by the same brand. Even though franchise agreements are designed in favor of brands, most owners are more than happy to sign them, because the right flag (and its reservation system) is extremely advantageous for the owner`s business. The right flag can significantly increase hotel occupancy and room prices and increase the value of a hotel by 20% to 40% compared to “unmarked” or lower brand options. (hereafter referred to as the “protected area”). “Not exclusively” means, for the purposes of this provision, that FRANCHISOR has granted or will grant to other franchisees that allow these franchisees to operate Americlns in accordance with the commercial system, using trademarks outside the protected area, some of which may compete with E`S Americln franchises for customers located within the protected area based on their location. In addition, according to the HVS study, FRANCHISOR or their related companies may represent in 2015 a juicy part of the portfolio of the major hotel chain larger than in Europe, as shown in the pie table below. HVS also indicated that the franchise agreement will continue to increase due to the many reasons why “franchising will likely continue to gain ground as a preferred operating model for a number of reasons: large chains have increasingly focused on franchising to achieve their desired pace of expansion; Third-party suppliers have been competent to bridge the gap between owners and branded businesses; and small, independent hotels in secondary locations are aimed at flexible, less standardized franchisors to remain competitive. CONVENTION of its intention to re-acquire the franchise for FRANCHISED LOCATION.
(c) the level of marketing costs; Use of funds. For the duration of this ACCORD, FRANCHISEE pays a maximum of two per cent (2%) of the marketing costs each month. gross monthly revenue from the franchisor for the previous month (the “marketing fee”) for depositing into a marketing fund.