HOS 489 Franchising and Management Contracts

The selection of a management company and a brand is a critical component to the overall success of a hospitality asset. This course considers the point of view of owners or operators in selecting management contracts and/or a franchise model to manage growth and profitability. Students analyze the various elements relevant in the decision, including time horizon for investment return, availability of capital for product improvement plans (PIPs), or need to rebrand. Students analyze information in management contracts or franchise agreements taking into consideration issues like agency or service contracts, incentive fees and royalty fees structure, the property management system (PMS), territorial restrictions, and other factors. Prerequisite: BUS 470

Credits

4