Could a Marriott franchise agreement hurt your hotel’s value?
Before buying into a Marriott franchise agreement, hoteliers should learn the potential downsides that may come into play if they want to sell in the future. Our latest guide for Marriott franchisees explores the ways in which their franchise agreements could impact both the value and the pool of buyers for their properties. You can get all of our guides for free on www.fairfranchise.org.
There are several factors franchisees should be aware of that could impact a sale, including:
- How potential buyers may perceive Marriott’s controls over hotel operations;
- The many costs that may be involved in transferring control of a Marriott-franchised hotel;
- Whether Marriott has retained the power to withhold consent for a sale or use a right of first refusal to block certain buyers;
- Franchisees’ relative lack of control over the fate of their brands.