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Dear AAHOA Member:

Promoting fair franchising standards has long been a top priority of AAHOA and its members. We believe that creating standards for competition and sales practices support the long-term sustainability of the franchise system model and allow hotel owners to compete in an environment that has changed significantly due to the pandemic and short-term rental options.

AAHOA has been transparent with our hotel brand partners about our position on fair franchising, including our support of legislation introduced in the New Jersey legislature that makes changes to the state’s Franchise Practices Act. We have encouraged an open dialogue about ways to improve the bill and satisfy Franchisees, Franchisors, and the broader industry.

Many of our other hotel brand partners have taken an open-minded and collaborative approach to fair franchising. We appreciate their willingness to work together to ensure better outcomes for AAHOA Members, the industry, and hotel customers.

However, we wanted to inform you that Marriott International – one of our longtime brand partners – has decided to take a different position.

Members of AAHOA leadership participated on a call in early December with top Marriott officials during which we discussed our position on fair franchising. We emphasized that AAHOA and Marriott have more in common than in conflict, and both support many issues at the federal, state, and local level to propel the hotel industry forward. Marriott nevertheless stated that it would no longer support AAHOA or attend AAHOACON23 in Los Angeles, April 11-14, if AAHOA continued to support the New Jersey fair franchising legislation.

Specifically, AAHOA explained to Marriott and our other hotel brand partners that AAHOA is not the author of the New Jersey legislation. However, we support four key points of the fair franchising bill that provide:

If a franchisor or brand partner receives commissions/rebates from a vendor based on purchases by the Franchisees, then such commissions/rebates must be fully disclosed and turned over for the betterment of the Franchisees and the franchise system, as approved by the FACs.
AAHOA shall not object to vendor exclusivity so long as the vendor provides these mandated products and services to Franchisees for competitive pricing.
AAHOA shall not support the selling of loyalty points by a brand partner or Franchisor for a profit.
AAHOA shall not support franchise fees being added that were not previously disclosed in the Franchise Disclosure Document (FDD) without prior approval from the FACs.
AAHOA further supports the preference of certified women-owned, minority-owned, and veteran-owned businesses to serve as the mandated and preferred vendors for the franchise business model.

We are disappointed that Marriott has decided to take this position. But AAHOA leadership will continue to maintain and offer open lines of communication to find a resolution that is in the best interests of our members and the hotel industry.

Even without Marriott in attendance at AAHOACON23, we look forward to convening in April to celebrate the great advances we have made, network with each other and our loyal industry partners, and discuss the many pressing issues facing our industry.

AAHOA will always stay true to its mission to advance the interests of hotel owners, including to advocate for fair franchising standards. We will also continue to keep our doors open to valued Franchisors and brand partners to discuss the best ways to strengthen the hotel business model.

After all, our industry is strongest when we all work together.

Sincerely,