Hotel Franchise Contract

By | November 26, 2014

Many business entities/ individuals start a hotel business as a franchise of an already existing and established hotel brand. But this can be done only if the actual company owner permits the new business owner to do so. This permission is certified in the form of a legal document called the hotel franchise contract.

The hotel franchise contract template is a ready made document that provides a framework for drafting such contacts. The template makes the task of framing the contract easy and fast. Below given is a sample of such template.

Sample Hotel Franchise Contract

Date: ____________________ (the date on which the contract is signed)

This contract is being entered in by (1) ____________________________ (name of the company that owns the hotel business), to be referred to as the HOTEL PARENT COMPANY, hereon after in the contract; and (2) ______________________________ (name of the company that will own the franchisee), to be referred to as the HOTEL FRANCHISEE, hereon after in the contract; as on the date of signing mentioned above.

The representative of party (1) is _______________________ (name of the respective representative goes here) and of party (2) is __________________________ (name of the representative of the franchisee goes here); who will be the under- signatory.

The contract states that the named HOTEL PARENT COMPANY provides the named FRANCHISEE with the right to operate under the hotel brand name ______________________ (the name of the hotel brand goes here) for ________________ (the duration for which the franchisee can do so).

Details of the HOTEL PARENT COMPANY:

(The hotel parent company’s details are recorded in this section. The details to be recorded are mentioned as the titles below).

Company Name: _________________________________________________

Brand Name: _____________________________________________

Contact Address: _________________________________________ Area Zip: __________

Contact No.: _____________________________________________

Details of the HOTEL FRANCHISEE:

(The franchisee’s details are to be mentioned here, and the required info is mentioned as titles before the blanks below).

Company Name: _______________________________________________

Contact Address: __________________________________________ Area Zip: _________

Contact No.: ______________________________________________

Terms of the Contract:

(Terms and conditions must be recorded here in points, first is done as an example).

  1. The FRANCHISEE will have to pay _______________ (amount to be paid must be mentioned here) to the PARENT COMPANY as basic fee for provision of the franchise.
  2. ____________________________________________________________
  3. ____________________________________________________________

Signatures:

(This section seals the deal as the representative of both the party’s sign on the line which is followed by the name of the signatory).

_____________________________                            _____________________________