Wanted Hotel for Franchise in Tamilnadu for London based Hotel

Hotel Vice President direct to us.

Please find the Hotel Franchise Terms.

	FRANCHISE HOTELS AND RESORTS TERMS - INDIA
S.NO.	DESCRIPTIONS	DETAILS
1	Hotels	INN,  HOTEL, RESORT, SUITES, PLAZA HOTEL, GRAND PLAZA HOTEL
2	Terms	Minimum 5 years followed by option for an additional five years, each option exercisable by mutual agreement.
3	Initial Fee	US $500 Application Fee – one time
		US $15,000 payable per hotel – one time - This fee will be charged only once for the entire contract term.
		The fees covers all costs and expenses in integrating the hotel into the franchise system, website, distribution channels, brochures, connection and
		integration into the key players of the global distribution systems, online travel agencies, etc. and all other start-up expenses.
4	International Shared	Monthly Royalty Fee: – US$10.00 per room / per month
	Cost
		Monthly Marketing Fee: - US$10.00 per room / per month
		This is the regular fee to keep the hotel within the Franchise reservation and online system, upgrading the systems, and worldwide marketing the
		property through Franchise’s exclusive channels.
5	Base Management Fee	50 Rooms and less: 10%  Management Fee Annual Gross Revenue of the Hotel
		51 – 100 Rooms: 9%%      Management Fee Annual Gross Revenue of the Hotel
		100 Rooms and over: 8% Management Fee Annual Gross Revenue of the Hotel
6	Incentive Management Fee	Incentive Fee based on percentage of Gross Operating Profit (GOP):
		GOP         6% of GOP
		Payable monthly.
		By the end of the fiscal year and upon provision a final Income Statement the yearly average Gross Operating
		Income is computed and payment adjustment in either favour are effected.
7	Global sales &	Franchise Hotels & Resorts program includes  Planning, development and implementation of marketing strategies for the Hotel, including advertising
	Marketing System	promotions, publicity, sales, e-commerce and direct marketing; Access to marketing programs developed or negotiated through the Franchise System.
	Contribution	Franchise brand identity and brand collaterals;
		Direct sales activities on behalf of the Hotel in both the leisure and business
		market segments;
		Inclusion in the Franchise Hotels & Resorts worldwide directory and on the Franchise Hotels website
		Select trade show coverage and other marketing activities, administrative
		costs and overhead related to the management of these programs.
8	FF&E Reserve	FF&E Reserve
		There shall be an FF&E Reserve Account opened in the Hotel’s name and controlled by the owner/s and/or owner/s representatives established to
		fund replacements and renewals of fixtures, furniture and equipment. This fund is dedicated and to be spent on the Hotel to maintain it in a
		competitive and leadership position and in accordance with Franchise Hotels & Resorts brand standards. The amount to be reserved is equal to the
		following percentages of the Hotel’s total revenue:
		Year 1 – 2 :     2 % of total revenue
		Year 3 :            3 % of total revenue
		Year 4 onwards:  4 % of total revenue
		This is a dedicated reserve to be set aside every month in the owners account
9	Hotel Development	To ensure the Hotel is developed and constructed to Franchise Hotel brand standards and has a successful opening and start-up period, Franchise Hotels
	Services Charge	services are available and the fees will be discussed depending on the scope of the project.
	(HDSA)
10	Distribution	Global Reservation Fee to be paid at the end of every month for automated reservations (GDS and Internet) @ the rate of 7% of net room revenue per
	Systems	reservation, plus EUR $6.75 per transaction reservation (only reservations generated through the Management Hotels GDS Reservation Channel will be
	&Reservation	accounted.) This fee goes directly to the booking agent of around 600,000 travel agents worldwide or booking agents of the major airlines, car rental
	Services Charges	companies and over 1,700 worlds leading hotel booking internet websites.
		Franchise Hotels & Resorts may increase the reservation fee and third party charges from time to time to the extent the increase is reasonably
		necessary to cover costs to the Reservations System. These fees are consistent with Franchise Hotels’ current standard for this service. Increase
		in fees will be notified 90 days in advance.
11	Marketing and	In addition to the Marketing Contribution, the owner will pay all third party charges assessed with respect to various programs that are implemented
	Brand Programs	generally for Franchise branded hotels from time to time, respectively. Some examples are frequent flyer programs, guest loyalty program, travel agent
		loyalty program, employee training programs, guest satisfaction programs and employee satisfaction surveys.
12	Uniform System	All Fees quoted in the Initial Proposal as well as in the Memorandum Of Understanding and the Hotel Management Agreement are based on the
		accounting guidelines, which, as of the date of this Initial Proposal is the “Uniform System of Accounts for the Lodging Industry.
13	Taxes and Charges	Tax Deducted at Source: Tax Deducted at Source (“TDS”) shall be deducted from all fees and amounts payable by Owner to Manager. All Other Taxes
		Fees and Charges: Other than TDS, Owner shall be responsible for all taxes, fees and charges imposed on all fees and amounts payable by Owner to
		Manager, and shall pay the same without deduction from payments to Manager.
		Note:  All Terms and Condition are subject to Franchise Hotels & Resorts Approval and has a validity of 60 days from the date of MOU
		( Memorandum Of Understanding )
		Franchise Hotels & Resorts
		California, USA