Hotel Industry

Washington, D.C.

People traveling for business and pleasure often seek out hotels with recognizable names and amenities. Owning a hotel franchise can be a lucrative way for an aspiring business owner to meet travelers’ needs while profiting from Americans’ mobility. If you are interested in buying a hotel franchise, there are several issues to consider before purchasing. If you already own a hotel franchise and are engaged in a dispute with a franchisor, you may need experienced legal representation in arbitration. We help prospective and existing franchisees throughout both of these important stages.

Are you interested in buying a hotel franchise? Are you facing a dispute with a franchisor over a franchise agreement or other issue? Contact us, Mario L Herman and Gregory O Herman, franchise lawyers, to arrange your consultation.

Liquidated damages provisions

Hotel chain owners should be particularly concerned with the liquidated damages provision in their franchise contracts. This provision refers to a fixed award to the injured party following a breach contract where damages are difficult to assess. Our experience in arbitration, as well as in helping people consider buying a franchise, gives me much insight into liquidated damages issues.

Territorial encroachment

Territorial encroachment is another issue that those potential hotel franchisees should understand. Territorial encroachment may arise when new outlets are authorized too close to an existing operation, even in the same city or on the same street.

Questions about buying or owning a hotel franchise? Contact us today to arrange your consultation.