Some 20 years after its creation, the list of AAHOA’s accomplishments is long and distinguished. Helping fight on behalf of its members against unfounded biases and stereotypes has rendered it the single largest, most powerful group in hospitality. And leveraging that power has led to what I consider its greatest contribution to hospitality, which is its influence on the large franchise companies.
The organization’s hallmark is the 12 Points of Fair Franchising it created as a guideline for the brands, but AAHOA’s impact goes far beyond that. For example, this past fall when the economy went from bad to worse, the group reached out to the franchise organizations to work with them in an effort to determine the best ways to proceed.
Of course, from the franchisor perspective, “best ways to proceed” can be considered a euphemism for “what can you do for us?” But that is exactly what was needed at the time and a proactive approach is ultimately to the benefit of both entities, which are mutually dependant on each other for success.
Some of the suggestions from AAHOA included: granting franchisees six to 12 month extensions on construction or renovation projects; postponing or suspending the introduction of any new amenities, programs or systems; decreasing royalty fees for any franchisees who are encountering severe financial hardships; and limiting liquidated damages.
While these suggestions may not all be feasible, there is nothing unreasonable about any of them. In fact, many brands have implemented such measures in recent months on their own. At times AAHOA has been viewed as an adversary of the brands, but nothing could be further from the truth. In fact, one look inside the pages of this special issue will illustrate just how much support the organization has from the franchise community.
Remember the hype that preceded the unveiling of the Fair Franchising Report when it came out a little more than a year ago. Many in the industry were concerned that the brand companies would be called out and publicly chided for not fully cooperating and amending their practices in favor of franchisees and the 12 Points of Fair Franchising. But there has been no such backlash or condemnation against any of the brands, only a measure of accountability.
There will always be a back and forth of sorts between owners and franchisors. That’s just the nature of the relationship. But thanks to AAHOA, there is a much better balance to that relationship than previously existed and franchisees everywhere now have a powerful voice. That is something for the whole hospitality industry to celebrate.