Franchising And The Society: The Case Of Franchising In The Hotel Industry

Abstract

Franchising is a major trend in the hotel industry. Despite the fact that almost two thirds of branded hotels in the US are franchised there is a distinct lack of empirical research on franchising in the hospitality industry. In this article we have reviewed one of the most relevant lines of research in franchising literature usually referred as franchising and the society, and we have concentrated on analyzing one of the most controversial issues in this line of research: the territorial rights in hotel franchising contracts. The paper identifies the main sources of conflict when dealing with territorial rights in hotel franchising contracts.