Negotiating Hotel Franchises

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Steve Rushmore's course is designed for hotel owners, developers, asset managers, and hospitality professionals who need to evaluate hotel brands and negotiate franchise agreements from the owner's perspective. Whether you're flagging a new build, converting an existing property, or renegotiating a brand at term renewal, this course provides the tools and insights to select the right brand and negotiate a franchise agreement that protects net operating income, preserves flexibility, and maximizes long-term asset value.

You'll learn how to evaluate brands on the economic terms that actually matter — not just royalty rates, but the full all-in fee stack including marketing contributions, loyalty assessments, technology fees, reservation charges, and PIP capital requirements. Through real-world case studies and proven negotiating strategies, you'll gain the knowledge to confidently engage with brand development teams, attorneys, and consultants throughout the brand selection and franchise negotiation process.

Ideal for hotel consultants, appraisers, attorneys, asset managers, and students pursuing careers in hospitality ownership or advisory roles, this course demystifies one of the most economically consequential decisions in hotel ownership.

Hotel franchise agreements are among the most expensive long-term commitments in the hospitality industry. While the headline royalty might be quoted at 5 percent, the true all-in cost of carrying a flag over a 20-year term typically lands between 11 and 16 percent of total revenue — a difference that translates to hundreds of thousands of dollars per year on a single property. These contracts are built around brand-favorable language, and they often tilt sharply against owners who negotiate without a full understanding of the economic levers, hidden fees, and PIP risks involved.

This comprehensive course is designed to equip hotel owners, developers, asset managers, attorneys, and hospitality professionals with the tools, strategies, and insights needed to select the right brand and negotiate franchise agreements that protect owner economics. Whether you're developing a new hotel, converting an existing property, advising a client on brand selection, or representing an owner at the franchise negotiation table, this course provides the practical knowledge to make brand decisions with confidence and negotiate from a position of clarity, structure, and leverage.

Through engaging video lessons, real-world case studies, and analysis of actual franchise term sheets and agreements, you'll learn how to:

• Build an all-in cost model that reveals the true 10-year carrying cost of any brand offer.
• Identify and negotiate the seven economic levers in a franchise agreement (royalty is the smallest).
• Avoid the PIP trap — why a $4 million brand-quoted renovation typically becomes $9 million, and how to negotiate a cost cap that prevents it.
• Demand and structure proper area protection and encroachment language to defend your market.
• Negotiate termination economics including liquidated damages, transferability, and buyout math.
• Compare brands on standard terms, key money, and concession history to drive better deals.
• See the Course Curriculum set forth below to see the extensive material covered in this course.

The cost for the Hotel Brand Selection and Franchise Negotiations course is $995, which includes the following:

• Access to the course
• Start at any time and proceed at your own pace.
• Unlimited downloads of sample franchise agreements, term sheets, evaluation tools, and publications.
• Brand determination guides, franchise offering and marketing information request templates, and a structured franchise evaluation and rating system.
• One-on-one Zoom calls with Steve Rushmore.
• Upon completion of the course and a passing final exam, you will receive the Certified Hotel Franchise Negotiator (CHFN) certificate (via e-mail) suitable for framing.
• Your name will appear in the Directory of Certified Hotel Franchise Negotiators.

Unlike brand-marketing presentations or generic legal overviews, this course offers a practical, owner-focused framework drawn from decades of experience in hotel valuation, brand evaluation, and franchise contract negotiation.

Who Should Take This Course:

• Hotel Owners and Developers: Learn how to evaluate brands on real economics, avoid the PIP trap, and negotiate franchise agreements that protect long-term returns and exit value.
• Asset Managers: Build the analytical framework to evaluate brand performance, advise on flag changes, and support owner decisions on renewals and conversions.
• Attorneys Specializing in Hospitality or Real Estate: Understand the economic substance behind every clause you paper, advise clients on what's actually negotiable, and add strategic value to every franchise engagement.
• Hotel Consultants and Appraisers: Improve your advisory services by integrating brand and franchise economics into feasibility studies, valuations, and strategic plans.
• Hospitality MBA Students and University Hotel Program Participants: Build real-world skills that bridge classroom theory and the realities of brand selection and franchise negotiation.
• Brand Development Executives: Learn the owner's perspective to facilitate more effective, balanced partnerships and reduce friction in development pipelines.
• Lenders and Investors: Understand how franchise economics affect underwriting, asset value, and exit potential on every branded property in your portfolio.
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By the end of this course, you'll be able to evaluate any hotel brand offer with a critical eye, understanding not just what the term sheet says, but what the all-in economics will look like over the full life of the agreement. You'll leave with brand evaluation tools, a structured rating system, sample negotiation language, and the confidence to advocate for terms that align with your investment goals.

Whether you're flagging your first hotel or managing a portfolio of branded assets, this course gives you the methodology to select brands wisely, negotiate franchise agreements from a position of strength, and build long-term brand relationships that work for both sides.