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In December 2015, the leading US-based hotel management publication, Hotel Business Review, published an article written by Ben Hanuka, titled: “Conflicts Between Franchise Agreements and Operating Manuals: A Canadian Perspective”.
In the article, Ben analyzes the sometimes difficult interplay between provisions in a franchise agreement and an operations manual, particularly in a mature hotel franchise system.
Established hotel franchise systems tend to have operating manuals with extensive requirements relating to virtually every aspect of the operation of the hotel, from the brand and quality assurance, to the use of technology.
Disputes may arise between franchisors and franchisees when operating standards are in conflict with express or implied provisions in a franchise agreement. For instance, this conflict may arise when a franchisor seeks to amend a provision in an operating manual which conflicts with an existing provision in a franchise agreement.
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