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. |