On Sunday, November 14, Steven J. Belmonte, Founder, President and C.E.O. of Hospitality Solutions LLC, will lead an educational session at the International Hotel/Motel & Restaurant Show in New York titled 'Franchisor/Franchisee: The Ulimtate Love/Hate Relationship.'
The session (10:30 a.m. to 12 Noon in Room 1D03-04) will highlight new ways to get increased value out of a franchise agreement.
“This educational session focuses on ‘Fair Franchising,’ a topic that is oftentimes controversial, but it makes for a lively, interactive discussion nonetheless,” Belmonte said. “It is not designed as a ‘trashing session’ to vent about unreasonable or unresponsive franchisors. Instead, it’s about owners learning how to get the very most—the highest return on investment—from the fees that franchisees are paying every month.”
Belmonte was selected to deliver this message because he knows first-hand both the franchisor and franchisee side of the hospitality business. Belmonte started working in hotels as a teenager and became a general manager at the age of 18. He then served as co-founder and C.E.O. of Equity Hotel Corp. in Chicago, operating approximately 35 hotels in 14 states. In 1991, he became President and C.E.O. of Ramada Franchise Systems and remained in that high-profile position until launching Hospitality Solutions LLC in November 2002. Through Hospitality Solutions LLC, Belmonte provides franchise-agreement formulations, termination-negotiation assistance, mediation, expert-witness and consulting services to all hoteliers needing assistance.
“I’ve said it for years, and so have countless others: ‘In business, you don’t get what you deserve … you get what you negotiate,’” Belmonte said. “Unfortunately, a lot of hoteliers lack the knowledge to negotiate the best deal or, should a problem arise, know where to turn if they need help settling a dispute.
“One of the most important messages that I’d like franchisees to take away from this session is that not all franchise companies are alike,” he said. “There should always be a way to structure a franchise agreement that is equitable for both entities. If implemented correctly, there are ways to maximize the benefits provided by the franchise company to help increase guest satisfaction and improve overall asset performance.”
Earlier this month, Belmonte and Hospitality Solutions LLC Vice President Wayne Miller were certified as trained “CPR Mediators” by the CPR Institute for Dispute Resolution in New York. The CPR Institute, recognized by the American Hotel & Lodging Assn. and other hospitality entities, is a nonprofit alliance of the largest global corporations, law firms, scholars and public institutions in the country. Its primary mission is to “increase the reliance on negotiation rather than litigation.”
“There is a sizeable wave of advocacy for mediation that is building within our industry,” Belmonte said. “Litigation is very expensive, arduous and time consuming, and it puts a lot of stress on all parties involved. Likewise, litigation doesn’t focus on settlement or resolution. It focuses on deciding which side is right or wrong. Therefore, any settlement is a byproduct of litigation.
“With that in mind, franchisors and franchisees interested in a win-win resolution rather than a win-lose settlement should consider mediation and working out an equitable arrangement,” he said. “More often than not, the franchisors are as anxious to resolve matters with franchisees as the franchisees are to keeping their franchise.”
Those interested in attending the “Franchisor/Franchisee: The Ultimate Love/Hate Relationship” on November 14 at 10:30 a.m. can register online atwww.ihmrs.com/register.
About Hospitality Solutions LLC
Hospitality Solutions LLC, Randolph, N.J., provides franchise agreement formulations and termination negotiation assistance, mediation, consulting, litigation support and expert witness services to the hospitality and service industries. Company President and CEO Steven Belmonte, former President and CEO of Ramada Hotels, also served as Chairman of the American Hotel & Lodging Assn.’s Educational Foundation, serves on the Board of Directors of Arlington Hospitality Inc. and serves as a partner with Belmonte/Lasky Asset Management Inc. For more information, call (973) 598-0839, email stevenbelmonte@aol.com or visit www.stevenbelmonte.com.
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