Management & Franchise Agreement Negotiation
We support owners in negotiating fair, balanced agreements that protect their interests and secure long-term value.
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Contract terms have changed substantially over the past years, and the balance continues to shift in favor of the owner.
Hotel management and franchise agreements are often signed for 20 years or more. The quality of these contracts impacts the value of the property and affects the owner’s subsequent ability to sell. Small improvements in terms can cumulate to large impacts in value.
Besides the total fees paid to the operator or franchisor, a good agreement must include strong clauses related to performance, incentivization, area protection and intra-brand competition, owner control prerogatives, termination rights, and many others.
Lunasole Hospitality has a vast experience in negotiating agreements which enhance the value of hospitality assets.
