Toronto Hotel Lawyers Advising on Franchise License Agreements

Whether you are a first-time hotel entrepreneur entering into a franchise license agreement with a well-known hotel brand, or you are a seasoned multi-unit franchisee who has done this before, franchise license agreements are a critical element of your business and must be carefully reviewed and negotiated.

All hotel franchisees hope that their venture will be a success, and where it is, the long-term license or franchise agreement can bring comfort and stability to the franchisee. However, where a franchise encounters challenges, the franchise agreement may become a burden to the franchisee, offering few, if any, escape options.

It is, therefore, important to have your franchise and license agreements reviewed by a highly knowledgeable hotel lawyer before you sign anything. Obtaining this guidance and assistance can ensure you thoroughly understand your rights and obligations under the agreement, understand all areas of potential risk and liability, that this risk and liability are properly addressed and mitigated where possible, and that you are adequately protected.

At Baker & Company, our hotel lawyers have been advising hotel franchisees for more than 30 years. We are one of a very few select firms that focus on this specialized area of law and have a long history of representing clients in the hotel industry throughout Ontario. With our help, you can ensure that you are setting yourself up for success.

Complex Franchise Terms 

Most hotel license or franchise agreements contain lengthy terms that are intended to reflect the significant investments made by both the Licensor and the Licensee in opening a new hotel under a brand name.

Important elements of hotel franchise and license agreements include:

• Franchise and royalty fees;
• Territory and exclusivity clauses;
• Area of protection clauses;
• Ownership transfer;
• Liquidated damages;
• Capital investments; and
• Key money.

Hotel Franchise Negotiations 

Many prospective hotel franchisees believe that franchise agreements are non-negotiable, particularly if they are seeking to franchise a huge multi-national hotel brand. They are often even told by the brand that the franchise agreement is “take it or leave it”, and that there is no wiggle room on the terms.

However, the reality is that, more often than not, there is the ability to negotiate on some of the contract terms, and the possibility to gain some important concessions that will work in your favour.

Negotiations of a hotel franchise agreement should not be undertaken without the assistance of a highly skilled and strategic hotel franchise lawyer. At Baker & Company, we have been advising prospective hotel franchisees as well as current hotel franchisees seeking to expand their portfolio for more than 30 years and have successfully negotiated hundreds of agreements. We are known for being the firm that handles the “complicated stuff”, including negotiating with large, well-known, and international hotel brands. We do not shy away from the most complex of legal scenarios and regularly help clients through their most thorny and muddled franchising and licensing issues.

Baker & Company: Representing Hotel Franchisees Across Ontario 

At Baker & Company we take the time to meet with you and understand your unique needs in order to offer solutions to the diverse problems you may encounter. We rely on our multidisciplinary base of experience and expertise across a wide range of practice areas to provide exceptional and thorough legal guidance. Call us at 416-777-0100 or contact us online for a consultation.