Legal Research Of Hotel Franchise And Management

According to the statistics of The International Hotel and RestaurantAssociation (IH&RA) and Jones Lang LaSalle (JLL) which is a professional serviceand investment management firm focus on real estate, the hospitality industryreaches an annual revenue of500to600billion US$and hotel investments in Asiarose218per cent to US$7.5billion in2013, which makes2013the market’sstrongest year since the global financial crisis that started in2007. Mainland Chinaaccounted for13per cent of investment activity, or$1.1billion.Through above information, we could conclude that China have had taking animportant place in Asia or even global hotel market. As for the new investment peakand increasing demanding for hotel legal service, we believe that excellent ability ofdealing with kinds of legal challenges in hotel investment and management willassist to make your hotel a big success. The thesis is mainly focused on thehospitality business model of franchise and management contract to explain legalissues of hotels group thorough separate four chapters.The first chapter is a brief induction of hotel legal relation, which includes theconcept, three elements, types and relevant basis of hotel legal relation.The second chapter gives a comparative analysis of business model in hotelsgroup. The contents include the concept of hotels group, the legal nature of different business models and a detailed systematic comparison of hotel franchise andmanagement contract.The chapter three is a discussion of hotel franchise. In this chapter, the authorexplains intellectual property issue of hotel franchise; present franchise laws,regulations and contracts in China and United States; the risk of hotel franchise; themain obligations and responsibilities of franchise contracting parties; theconvergence between hotel management contract and franchise contract; explain theright of cancellation to hotel franchise contract.The last chapter is occupying the most paper to explain hotel managementcontract. In this chapter you could find the legal nature of hotel management,foundational legal relation and characters of the third party management. Besides,this chapter explains the legal consequences such as the hotel owner transfer hotelassets and/or equity without authorization; whether the Hotel Management Contractcould apply to the right of cancellation the same as commission contract; theobligations and responsibilities of management contracting parties; the key clausesexplanation of management contract.This Thesis has figured out several complicated legal issues of hotel franchiseand management business model, these issues are：The difference legal nature of hotel group service in hotel franchise andmanagement;Some of the key working procedures towards intellectual property protectionbefore sign the hotel franchise contract;Discussed the right to dissolve hotel franchise or management contracts, andgive the conclusion of not a statutory right but a agreed right limited by time andcondition for the Hotel Franchise Contract; For the commonly argued any right ofcancellation of hotel management contract, the thesis’s point is that the hotelmanagement contract is not the same with agency contract based on theconsideration of contract purpose, contractual autonomy and Chinese Contract Law.For the risk of either party may call for any right of cancellation of hotelmanagement contract, the author also provided solutions to prevent or reduce such risk from practical aspects.The thesis is expected to provide references or helps for legal practitioners inhospitality industry, and with all the best wishes for a sustainable development ofgreat China hotel industry.