Welcome back to another episode of The Richer Geek. It's been a while since I've talked to hotels, so I thought I would bring the lovely Nichole on to ask me some questions about changing franchises. That's been a very popular conversation piece on why you would switch it what are the headaches? And what does it take to do it in some of the questions that influenced me to choose a different franchise?

In this episode, we're discussing…

· [1:28 – 3:45] Introduction and Motivation for a Hotel Franchise Change

Mike bought a hotel and realized the need to change franchises for better market share.

Motivation: Increasing reward members from 20 million to over 100 million.

· [4:05 – 5:58] Hotel Franchise Agreement and Negotiation

Initial franchise agreements range from 5 to 20 years.

· [5:58 – 8:51] Negotiating break fees with specialized attorneys for franchise transitions.

Considerations when choosing a new franchise.

· [9:19 – 12:44] Transition Process and Overlapping

Challenges of running two different systems during the transition.

It is negotiating with both old and new franchises simultaneously.

Overlapping issues with reservations and back-end systems.

· [16:52 – 19:03] Positive Impacts of Hotel Franchise Change

Positive outcomes: Increased market share, better rewards programs, and direct bookings.

I was switching from a small to a global franchise for improved support.

· [19:22 – 23:08] Key Lessons Learned for Potential Franchise Switch

Hire a contract attorney for negotiation.

Do thorough due diligence, consider multiple franchises, and negotiate terms.

Patience during the process and understanding the positive impact in the long run.

· [23:38] Closing and Preview

Advice not to get frustrated during the process.

A sneak peek into future episodes and updates.

Resources from Mike and Nichole

Gatewaype | Nic's guide