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Key Components Of Franchise Fees

Hotel franchise companies (‘the brands/chains’) charge their franchisees a series of fees that cover a variety of services provided by the franchisor.

In our firm’s annual Trends® in the Hotel Industry survey of operating statements, PKF Hospitality Research, (PKF-HR is a CBRE company) captures four of these fees discretely:

Royalty Fees

Advertising and Marketing Assessments

Loyalty Program Fees

Reservation Assessments

To gain a better understanding of the fees paid by hotel owners to their franchisors, PKF-HR analyzed the operating statements of 1,304 chain-affiliated hotels in our Trends® database that reported franchise fee payment data each year from 2007 through 2013.

via The Components Of Franchise Fees. – Wednesday, 17th September 2014 at 4Hoteliers.

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