AAHOA Hosts Its First Brand Meeting

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. October 14, 2008

MAY 18, 2007. The Asian American Hotel Owners Association (AAHOA) hosted its first Brand Meeting on May 9, 2007, during the annual convention of Choice Hotels International (Choice) at the Gaylord Palms Resort in Kissimmee, Florida.

AAHOA President Fred Schwartz welcomed members and introduced the distinguished guests, including Tim Shuy, Choice's vice president of Fair Franchising; Johnny Walker, chairman of the Choice Hotels Owners Council (CHOC); Perry Patel, member of the CHOC Board of Directors and chair of the CHOC Fair Franchising Committee; and Ken Blair, past chairman of CHOC and the fair franchising liaison to Choice Hotels. Schwartz also provided a brief overview of AAHOA news and updates for the year 2007.

AAHOA Chairman Danny Patel explained the goals and initiatives for the upcoming year:

o Scheduling additional Brand Meetings to discuss fair franchising issues, and working with the franchise companies to address concerns of AAHOA members

o Creating an Ambassador program, with the appointment of five (5) local representatives in each region to serve members needs

o Offering an AAHOA Coupon Guide, with offers and discounts that will have a monetary value of more than ten (10) times the annual AAHOA membership dues

AAHOA Vice President and General Counsel Laura Lee Blake discussed the work AAHOA had accomplished concerning fair franchising issues, including the updated 12 Points of Fair Franchising. AAHOA evaluated leading franchise companies' compliance with AAHOA's updated 12 Points. Using these criteria, AAHOA created a Performance Appraisal Report (PAR) for each of the designated franchise companies, and sent it to them for their feedback. AAHOA is now in the process of scheduling final meetings with each of the franchise companies to negotiate changes to their franchise agreements and business policies that will better protect the interests of franchisees.

AAHOA Vice Chairman Ash Patel informed the crowd that AAHOA is investigating the recent complaints it has received concerning changes to Choice's approved vendor program. AAHOA is insisting that Choice treat its franchisees fairly, and not penalize them if they are unable to comply with certain standards because the approved vendors cannot provide the mandated products in a timely manner.

"This was a strong Brand Meeting," said Chairman Danny Patel. "By showing up in record numbers, our members delivered a powerful message that they want fair franchising. It is time for Choice, and each of the franchise companies, to sit down with us and make some changes."

According to AAHOA President Fred Schwartz, "With more than two-thirds of our members owning franchise hotels, fair franchising is the lifeblood of our association. It is imperative that we let everyone know our fair franchising standards, and provide opportunities for AAHOA members to voice their concerns at Brand Meetings, such as the one in Florida. If the franchise companies do not treat our members fairly, no one will succeed. If we work together, we can reach new heights that are unprecedented in the franchising world."