Hospitality Experience

Franchise Agreement for Holiday Inn Express

We were engaged to assist a client in negotiating and structuring a franchise agreement with Holiday Inn Express, a globally recognised midscale hotel brand. The objective was to secure favourable terms that aligned with the client’s operational and financial goals while leveraging the brand’s reputation to enhance market positioning.


Project Scope

We were engaged to assist a client in negotiating and structuring a franchise agreement with Holiday Inn Express, a globally recognised midscale hotel brand. The objective was to secure favourable terms that aligned with the client’s operational and financial goals while leveraging the brand’s reputation to enhance market positioning.

The process began with an in-depth review of the franchise agreement template provided by the franchisor. Key elements such as franchise fees, marketing contributions, operational standards, and brand guidelines were critically assessed. These terms were benchmarked against similar agreements within the industry to ensure competitiveness and fairness.

To support the client’s decision-making, we conducted a market analysis to evaluate the potential performance of the Holiday Inn Express brand in the proposed location. This included examining local demand drivers, competition, and customer preferences. Insights from this analysis informed the negotiation strategy, particularly regarding projected revenue and brand alignment with the target market.

We worked closely with the client to identify areas where terms could be optimised. Negotiations focused on securing flexible arrangements for initial fees, royalty structures, and performance metrics. We also ensured that the operational standards outlined in the agreement were practical and achievable within the client’s operational framework.

In addition to financial and operational considerations, we reviewed brand marketing requirements, technology integration mandates, and training obligations to ensure they supported the client’s overall objectives. Recommendations were made for clarifications or amendments to protect the client’s interests while maintaining compliance with brand standards.

Hospitality
Transaction Advisory
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