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ARTICLE · 01 SEPTEMBER 2021

Hotel Franchise Agreements

The hotelier industry integrates many and varied legal aspects, and thus, legal arrangements with regards to the management and operation of a hotel are accompanied by a system of complex legal agreements.

IsraelCorporate/Commercial Law
Efraim Weinstein Law Offices
Efraim Weinstein Law Offices

Introduction

The hotelier industry integrates many and varied legal aspects, and thus, legal arrangements with regards to the management and operation of a hotel are accompanied by a system of complex legal agreements. The parties engaging in hotelier agreements are the owners of the hotel (the owner of the land and the structure) and another company which is supposed to operate the hotel. The desires of each of the engaging parties, and naturally the type of hotel, require different mechanisms of legal engagements.

There are three main types of engagements: management agreement, lease agreement and hotelier franchise agreement. While the engagements within the state of Israel (namely, when the owners and the company engage in order to operate the hotel are local Israeli bodies) are usually done by way of a management agreement or lease agreement, engagements with an international party are usually done via a franchise agreement. In the article herein we will

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