Accor's Fair Franchising Receives High Marks From AAHOA

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. October 14, 2008

MAY 20, 2008. Accor North America, one of the largest hotel chain owners and operators in North America, was the franchisor to receive the highest marks on a progress report recently released by the Asian American Hotel Owners Association (AAHOA) evaluating hospitality companies' compliance with the organization's 12 points of fair franchising. AAHOA deemed Accor North America, franchisor for the Motel 6 and Studio 6 brands, the "most receptive" of all franchise companies surveyed. During AAHOA's 2008 convention in San Antonio, Texas, the association announced the release of an extensive progress report that details how five major hotel franchisors are complying with the 12 Points of Fair Franchising, a set of franchisor-franchisee standards that AAHOA created in 1998.

"Accor has really understood the true meaning of the partnership between franchisors and franchisees," said Chandra Kant I. (C.K.) Patel, AAHOA board secretary and director at large. "Of all the franchisors we worked with and evaluated, Accor came out on top."

AAHOA commended Accor North America, including the Motel 6 and Studio 6 brands, on specific franchising points including:

early termination and liquidated damages;

vendor exclusivity;

maintaining relationships with franchisees;

dispute resolution; venue and choice of law clauses;

franchise sales ethics and practices; transferability; and

sale of the franchise.

For example, on maintaining relationships with franchisees, after reviewing the report with AAHOA executives, Accor North America executives agreed to become more familiar with AAHOA's Certified Hotel Owner program and determine whether it will recommend the program to its franchises.

"Accor North America fundamentally believes that connecting with our franchisees by embracing AAHOA's fair standards is the key to a franchisor's healthy growth and development," said Dean Savas, senior vice president of franchise for Accor. "We will continue dialogue with AAHOA in order to build an even stronger relationship with the association."

The Progress Report examines five major hotel franchisors that have a strong presence in the association: Accor Franchising North America, Carlson Hotels Worldwide, Choice Hotels International, La Quinta Franchising and Wyndham Hotel Group. The report is based on an extensive and multipart process in which these five hotel franchisors worked with the association to measure their fair franchising practices against the association's fair standards. The report provides a tool for holding franchise companies accountable for their practices and agreements. The results of the progress report are based on each franchisor's receptiveness towards the updated 12 points of fair franchising as well as how AAHOA perceives their compliance. Accor North America's franchise executives met with AAHOA executives on numerous occasions and agreed to work with AAHOA's requests.

AAHOA is a franchising advocacy and support association that considers itself "the voice of owners" in the hospitality industry. The association has 8,700 members who own more than 50 percent of the hotel rooms in the industry.

Accor North America was a founding member of AAHOA in 1996 and has worked closely with AAHOA over the years to stay on the cutting edge of franchise practices. Accor North America places great value on training, as its franchisees benefit from the same training tools and programs that it offers its corporate managers through the Accor Acad'emie, which offers collegiate-level training on how to become a successful property owner.

To learn more about Accor North America, please visit www.accor-na.com. If you are interested in learning more about franchising with Accor, please call 888-842-2942 or email [email protected]