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U.S. Franchise Systems Named 'Best Practice Champion' for Fair Franchise Agreement 
 
ATLANTA (Sept. 7, 1999) - Atlanta-based U.S. Franchise Systems (Nasdaq: USFS) has been named a �Best Practice Champion� for its fair franchise agreement by the American Hotel Foundation (AHF) and American Express.  The award comes as a result of a study conducted by Cornell University�s School of Hotel Administration and funded by AHF and American Express to identify the ideas, strategies and processes that epitomize excellence in the hotel business. 

Commented Mike Leven, president and CEO of USFS, �After less than four years in operation, we�re thrilled that USFS has been recognized for its fair franchise agreement.  Our goal is to treat franchisees honorably and reasonably, and our franchise agreement reflects that philosophy.�

The study cites USFS� franchise agreement for being more two-sided than most industry agreements and for terms that contribute to building good faith and good relationships.  For example, any substantial changes in standards requires approval of a two-thirds majority of franchisees, while in a traditional agreement, changes are made at the company�s discretion.  In addition, in traditional agreements there is no area of protection (AOP); USFS provides franchisees with an AOP that is negotiated with each deal and is valid for the life of the agreement.  USFS� agreement also provides for no unreasonable upgrade requirements and impact fees, and no hidden fees.

According to the AHF, more than 3,500 hotel strategies were analyzed before 144 �Best Practice Champions� were selected.  Best practices range from guest satisfaction to marketing and cutting costs.  The study is the largest the AHF has ever conducted, and it represents the organization�s first collaboration with an industry partner such as American Express.

U.S. Franchise Systems was formed in 1995 by Mike Leven, a 38-year veteran of the lodging industry, and Neal Aronson, former principal of Odyssey Partners L.P., a New York investment firm.  USFS� brands include Microtel Inn & Suites, Hawthorn Suites and Best Inns & Suites.  The Company was formed with a customer-oriented, quick-response corporate culture that has enabled it to grow faster than any other new franchise company in the industry.  USFS also offers hotel management services to its franchisees.

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Contact:
Jessica Ploszaj 
U.S. Franchise Systems, Inc.
(404) 235-5780 
[email protected]
Douglas G. Viehland, President
American Hotel Foundation
 (212) 640-5096
 
Also See: Cendant Launches Precedent-Setting Hotel Franchise Relations Policy / Sept 1998 
Choosing a Flag Deciding Which Franchise Suits a Property Best Is No Easy Task / The TaylorGroup 

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