The franchisor of Super 8 hotels is
the Wyndham Hotels group and the franchise owners are not very happy with them.
The main reason that the franchisees are unhappy is because of the enforced
upgrade of a property management system that will be very expensive. Franchisee
owners believe the upgrade will create financial difficulties. It is true that
the franchisor makes the decisions about the pricing, franchise fees, and
maintenance needs, so the franchisees are subject to the decisions of the
franchisors, but this does not mean that the franchisors can do whatever they
want as is clear in the case of Super 8. The franchisees must be able to at
least give their input to the franchisor. Being heard goes a long way. This
allows the franchisor to keep the franchisees profit margins in mind. In
theory, Wyndham Hotels Group has the ability to make a huge profit by narrowing
the profit margin of their franchisees, but this is not practical because the
franchisees will not want to renew their franchise agreements if they are not
profiting from the arrangement. Wyndham Hotels Group must allow its franchisees
to succeed if it is to succeed itself.
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