A hotel franchise is a legal document drafted when in individual or an organization takes the responsibility of opening a franchisee of a famous and reputed chain of hotels. The contract gives a clear view of how the business will function within the franchise system keeping the brand name of the hotel chain intact.

Sample Hotel Franchise Contract:

Contract number: B54 K12

This hotel franchise contract is being prepared on 10th of February 2011 between Dalton Group of Hotels with head office located at: 12 James Wood Road, New York, New Jersey 4512 and Mr. John Mayo with an office address 85 Long High Street, New York, New Jersey 4712 to open a hotel franchise under brand name of Dalton Group of Hotels. The new hotel will be opened at the following address:

6754, ABC Street

New York, New Jersey.

Both the parties need to agree to the following terms and conditions before entering into the contract:

  • Dalton Group of Hotels will provide 50% of the capital required to set up the franchise.
  • Mr. John Mayo has to make sure that the hotel has a five star rating like other hotels of the Dalton Group.
  • The profit will be shared on equal basis, which is both the parties will get fifty percent of the profit.
  • In case Mr. John Mayo  harms the reputation of the Dalton Group, then they can take legal action against Mr. Mayo and cancel the contract without any notice period.

It is evident that both the parties have agreed to the above mentioned terms and conditions and put their signature below.

Signature of franchise holder:                                                           Signature of the hotel group:

John Mayo                                                                                         Nathan Lee

(CEO, Dalton Group of Hotels)

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