5 Landmines To Dodge In Foreign Hotel Franchise Deals

Law360, New York (September 18, 2013, 7:15 PM EDT) -- For hoteliers looking to snag a piece of a growing market abroad, franchise deals can seem like the easiest route to profits. But intellectual property, tax and other issues can beset this otherwise franchisor-friendly structure, attorneys note.

With the global hotel industry on an upswing and the U.S. offering little room for additional growth, hotel companies are regularly turning to franchise models to plant flags in Europe, Asia, Africa and other foreign markets, experts noted. But while these deals offer significant benefits — requiring less capital...
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