HTM 3244 Lecture 9: Financing Protection
5 Oct 2016
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Lecture 9: franchising protections: franchisee/ franchisor protections, advisory boards franchisee voice/ relationship purpose with no legal advantage, association (voting privilege) b. i. Residence inn: arbitration dispute resolution section of the fdd (3rd party) c. i. Not even an option for marriott: legal d. i. Tropical smoothie potentially: removing poor performers from the system ( flag removal , major con for being a franchisor, how to assess franchisees, accountable to c. i. Marriott looks at % of 9s and 10s: give time for corrective action d. i. Banks recognize brand/ premium value (hilton, marriott: transparency, minimizing financial hardship for the franchisee negotiation, what happens if it goes to court? g. i. Big corporate franchisor vs. small franchisee: funding sources/ financing the business, debt money that has to be paid back (typically with interest) a. i. Personal guarantee (collateral) personal assets at risk: equity for ownership interest/ return on investment b. i.
