August 2010 Archives

Stan Turkel, several years ago in 2006, wrote about AAOHA and hotel franchises.

"AAHOA has become a mature, pro-active trade association for hotel franchises with 8,300 members. Under President Fred Schwartz, AAHOA is professionally managed and is one of the leading forces in the hospitality industry. 

Its ongoing initiatives include: AAHOA Lodging Business magazine, a monthly publication, and an Annual Convention with attendance of up to 4000 members, sponsored in a large part by hotel franchisers.

Free educational seminars throughout the year for management and supervisory personnel.

Free regional trade shows featuring industry speakers, timely workshops, supplier exhibits and education courses."

For many franchise independent trade associations AAHOA is a model because it is a leading force in their industry, hotel franchises.

AAHOA formed in 1989, but there was another group of Indian hotel franchise owners, the Mid-South Indemnity association which had formed in the early 70's.  (Later these two groups of hotel franchise owners would join.)

The Mid-South Indemnity Group was formed because the Indian hoteliers could not get fire insurance, racism fanning the fear that they would simply burn down the hotel for the insurance money.  Without fire insurance, you cannot operate a hotel franchise.

The lesson for all franchise trade associations is that you become a leading force in your industry when you solve a significant and major economic problem for your members.

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Peter Romeo writing at QSR asks "how long can Subway stay on its [expansion]tear?


Differences in the answers have led to battles over the years between the franchisees and franchisor, which has traditionally operated just one unit, a training facility near its Milford, Connecticut, headquarters. "You have franchisees who aren't too happy when they're opening a Subway a half a mile away from their stores," says Technomic's Henkes.


Tensions have also escalated when franchisees feel a home-office initiative boosts sales, the base of the franchisor's royalty revenues, without increasing their profits. 


Most recently, about a third of the operators resisted the addition of breakfast, says Loren Goodridge, a 17-unit franchisee (with two under construction) and past head of the North American Association of Subway Franchisees (naasf). The a.m. menu was rolled out in May after being extensively tested in more than 7,000 restaurants.


"There was a concern among franchisees about losing money on it," says Steve Forbes, a two-unit Vermont franchisee who serves on NAASF's board. He counted himself among them.


Nonetheless, all parties attest that relations between licensee and licensor may be at an all-time high."


There are several important parts to this story, relevant to all franchisee associations. First, NAASF is willing to talk about their concerns about the Subway Breakfast Menu in public, and second the concerns are still grounded in a good working relationship. NAASF making the public know that individual franchise owners may lose money on the Subway breakfast menu, which might explain why not all Subways' franchise owners will be on board with the Subway breakfast menu. Kudos to NAASF for bringing up the dispute in a respectful manner, defending their members and the brand.

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Gold's Gym, the world's leading authority on health and fitness, today announced that Wendy McMullen has joined the company as its National Corporate Sales Director. In her new role, McMullen will be responsible for generating new national corporate wellness accounts on behalf of the brand. 

She will be working directly with Gold's Gym International, the Gold's Gym Franchisee Association and the National Franchise Council to grow and evolve the national corporate wellness program. McMullen has held numerous sales leadership positions with high-profile companies including Hyatt and Omni Hotels. 

She has a proven track record for success. "Wendy brings a wealth of national sales experience and will play a critical role in turning our national corporate wellness program into a powerhouse that will generate revenue for both franchise and corporate-owned Gold's Gym locations," said Jim Snow, president, Gold's Gym International. 

"The national corporate wellness arena represents an enormous opportunity for the Gold's Gym brand and we are thrilled to have her join the team to help us grow to the next level." 

 Mike Epstein, president of the Gold's Gym Franchisee Association, strongly supports the hiring of McMullen, expressing that it will help the well-known brand compete at the highest level in the corporate sales arena. 

"Wendy is extremely talented and has already begun speaking with some major potential clients on our behalf," said Epstein. "With her on board, we're confident that the Gold's Gym national corporate wellness program will become the premier force in the industry. We look forward to working with Wendy and Gold's Gym International to make that happen."

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