Question: Holiday Inn a division of Inter Continental Hotels Group PLC
Holiday Inn, a division of Inter Continental Hotels Group PLC, recently terminated 700 Holiday Inn franchise channel members. According to Holiday Inn, these channel members failed to meet Holiday Inn’s minimum standards. Over the years, the channel members did not make regular renovations and they were not willing to make the necessary investments in upgrades, such as new bedding, bathroom fixtures and other improvements, that would help to position Holiday Inn as a more upscale chain of hotels. Many of the channel members felt blindsided by what they saw as the franchisor’s stringent requirements and rigorous enforcement. Some of the franchisees had been associated with Holiday Inn for decades and felt that they had been loyal and productive channel members. They questioned the fairness of Holiday Inn’s negative evaluation of their performance. Do you think Holiday Inn’s termination of so many channel members was “fair”? Discuss from the point of view of the franchisor (Holiday Inn) and the franchisees (channel members).
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