Former Ramada Executive’s New Company Now Offers Front- and Back-End Mediation Services to the Hotel-Franchising Community
RANDOLPH, N.J. — AUGUST 28, 2003 — Hotel franchisees looking to assure themselves of a solid, equitable franchise contract—or, similarly, an equitable franchise termination—now can turn to a true lodging professional for help . . . and at substantially less cost than turning to an attorney.
Steven Belmonte, founder and President of Randolph. N.J.-based Hospitality Solutions LLC and the former President and C.E.O. of Ramada Franchise Systems Inc., a subsidiary of Cendant Corp., certainly knows both sides of the franchise business, having been a hotel owner/operator before being tapped to head Ramada. Now as head of Hospitality Solutions, which offers a full range of services to the hospitality industry, Belmonte is focusing on franchise negotiation and mediation because, in his words, “it’s a service niche that’s never before been filled by lodging professionals and made available to individual franchisees.”
“Basically, the franchise negotiation and mediation services we’re offering never existed before—no one specialized in hammering out solid, equitable agreements either at the front end or the back end,” Belmonte says. “Up until now, you had to engage a lawyer for this kind of negotiation—and the chance that the typical lawyer really knows the ins and outs of hotel franchising agreements is pretty slim. Franchisees need someone who knows the industry and these agreements inside and out.”
In other words, Hospitality Solutions has created a low-cost and expeditious alternative to getting lawyers involved.
“We can wrap up the typical project in as little as two weeks, and in my experience it usually takes attorneys that long just to get you on their agenda,” Belmonte says. “Cost-wise, there’s no comparison. Our typical project can be completed for around $3,900—it’s usually at least five times that much for an attorney to do the negotiating.”
Since launching the service five months ago, Belmonte and his Hospitality Solutions associate, Wayne Miller—a former Cendant executive and a former Holiday Inn, Hilton and Ramada general manager—have successfully negotiated nine new franchise agreements and 27 termination projects.
Franchisees Hail Hospitality Solutions’ Solutions
Together, Belmonte and Miller are drawing rave reviews for Hospitality Solutions’ specialized mediation services. Bob Patel, who owns and operates a Super 8 hotel in Martinez, Calif., says Belmonte stepped in to help Patel keep his franchise agreement after he’d had it terminated by the chain.
“We just weren’t up to standards, and that’s mainly because our cash-flow was down due to the economy’s impact on business,” Patel says. “I’d heard about Hospitality Solutions and got in touch with Steve. I told him I didn’t want to lose the franchise, and that if I needed to spend money I’d rather spend it on upgrading rather than on liquidated damages. He was a real comfort to me, told me everything was going to be fine—and it’s really turned out that way. He took my case to Super 8 executives, negotiated with them, and basically secured a second chance for me. Steve did well by me, and his services were worth every penny of his fee. I’ve since referred him to another franchisee who’s going through the same kind of problem.”
Roger Bloss, founder, President and C.E.O. of Best Value Inns, says Belmonte brings not only his decades of experience and knowledge to the table, but a sense of fairness.
“I’ve seen Steve turn down business from a franchisee wanting to get out of an agreement so he could join our chain,” Bloss said. “The franchisee got together with Steve, who looked over the termination agreement and said, ‘I’d love to take the fee, but what you’ve negotiated here is the best you can do.’ Steve’s got heart and he’s genuine, and those are big reasons that he’s so good at what he does. You have to have the knowledge, the personality and the integrity to negotiate these agreements well, and Steve brings all of that to the table.”
Mike Patel, President of Diplomat Hotels and former chairman of the Asian American Hotel Owners Association, agrees:. “Steve knows how to avoid the land mines that can be found in franchise agreements. He’s a straight shooter, he knows how to cut through the red tape, and he doesn’t promise you anything that he can’t deliver, which is something lawyers do all too often. Even if you have a poor case, Steve can help soften the blow.”
Hospitality Solutions can also help negotiate and mediate equitable agreements on the front end.
Chris Iversen, C.E.O. of Chrisannpha Inc., a Gorham, N.Y.-based commercial development company, retained Belmonte and Hospitality Solutions to negotiate a Hampton Inn franchise agreement for a hotel Iversen is building in Geneva, N.Y.
“Steve’s company has the experience and knowledge to be aware of avenues for maximizing and improving franchise agreements—avenues that we just weren’t aware of,” Iversen said. “He approached the franchise-agreement process with ideas that we would not have thought of, and we wound up getting terms in the agreement that we would not have gotten without his expertise and ability.”
Belmonte says that franchise negotiation and mediation services are particularly needed in times like the present, when the economy is having a decidedly negative impact on the hotel business.
“Many franchisees are experiencing the kinds of problems Bob Patel was going through with his Super 8—they want to do what’s required, but they don’t have the money to do it, and that’s typical in a down economy,” Belmonte says. “We can help any franchisee flying any flag, and I think what we bring to the negotiation process can result in a win-win situation all the way around. The franchisee is happy because he’s gotten out of an agreement he wants to be out of, or has been assured that the one we’ve negotiated is fair and solid, and the franchisor is happy because it’s been taken care of quickly and equitably.”
About Hospitality Solutions LLC
Hospitality Solutions LLC, Randolph, N.J., provides franchise agreement formulations and termination negotiation assistance, 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 serves as Vice 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 or email stevenbelmonte@aol.com.
Logos, product and company names mentioned are the property of their respective owners.
