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A NEW JERSEY bill that will reform the franchise business model in that state took another step forward today, moving from the Assembly to the Senate, and supporters, including AAHOA, expect it to become law this year. However, the American Hotel & Lodging Association has come out in opposition to the law, saying it would "undermine the foundation of hotel franchising." New Jersey Assembly Bill A1958 would make changes to the New Jersey Franchise Practices Act. AAHOA has been supporting the bill, saying it mirrors several concerns included in its 12 Points of Fair Franchising. Specifically, it would reform rules for mandated vendors, rebates, loyalty programs and new fees, AAHOA said in a statement. "New Jersey has long been a state with a strong entrepreneurial culture that has been welcoming to immigrants, including many AAHOA members," said AAHOA Chairman Bharat Patel. "The state Assembly recognized that and took a step toward making New Jersey a better place for small businesses with today's vote to advance fair franchising principles. New Jersey can be an example to the nation for supporting franchising practices that allow hotel owners to achieve the American dream." AAHOA supports the preference of certified women-owned, minority-owned and veteran-owned businesses to serve as the mandated and preferred vendors for the franchise business model.

THE AMERICAN FRANCHISE business model is in trouble, according to a recent survey commissioned by AAHOA. The survey was inspired by a webinar AAHOA co-sponsored to gather public comment on the state of franchising for the Federal Trade Commission. The survey found that only 5 percent of the franchisee respondents are satisfied that their current franchise agreements provide fair terms representing a balanced relationship between themselves and their franchiser. Also, 72.6 percent of respondents would "possibly" or "probably" terminate their current franchised business within the next year if they could do so without penalty. "Franchising is in dire straits unless changes are made," said Laura Lee Blake, AAHOA president and CEO. "Franchising is still a powerful tool for economic mobility for America's small-business owners, including AAHOA Members. But franchising only works when both franchisors and franchisees are committed to its success, which requires transparency, fairness, and sustainable business practices. As this survey shows, there is much room for improvement when it comes to relationships that allow our small-business owners to thrive." Blake recently wrote an editorial supporting AAHOA's 12 Points of Fair Franchising and its promotion of a proposed New Jersey law that would reform that state's franchising regulations in ways similar to the 12 points. Several large hotel companies, including Choice Hotels International and Marriott International, protested AAHOA's recent annual convention in protest to its position on franchise reform The survey was conducted among owners of hotels, restaurants, retail stores and other small businesses that had participated in the FTC webinar. It was co-sponsored by the American Association of Franchisees and Dealers, and the Coalition of Franchisee Associations, conducted the survey after a recent webinar with FTC Chair Lina Khan. The FTC is soliciting comments through June 8 about issues that affect franc

PRESIDENT DONALD TRUMP laid out his plan for the nation in his first address to Congress on Tuesday since beginning his second term on Jan. 20. AAHOA was the first industry group to commend his commitment to the American Dream, even as markets reacted negatively to his rapid moves on the economy, immigration and foreign policy amid federal restructuring, strained alliances and trade uncertainty. Trump's statement, "The American Dream is unstoppable," resonates deeply with AAHOA members-entrepreneurs, small business owners, and job creators in hospitality, the association said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to "President Trump's proposals are the tax reforms our industry needs," said Miraj Patel, AAHOA chairman. "That's why AAHOA will be in Washington, D.C., on March 11 to 12 to advocate for these critical measures. We look forward to engaging with lawmakers to ensure America's hotel owners are heard. Tax relief and pro-business policies are essential to keeping the hotel industry strong."

AAHOA IS URGING hotels to adopt cybersecurity measures to prevent incidents similar to the recent cyberattacks on MGM Resorts International and Caesars Entertainment. Following the ransomware attack on IHG Hotels & Resorts last year, which cost hotel owners between $30,000 and $75,000 each, AAHOA called for clear lines of communication to protect franchisees who bore the brunt of revenue losses from bookings missed due to the disruptions. In July, Choice Hotels International confirmed a data breach impacting guest information in its Radisson Hotels Americas chain, originating from a file-transfer system hack, according to AAHOA and media reports. The association said that most impacted franchisees are small business owners, unable to absorb unexpected booking losses. This challenge is amplified by ongoing issues like staffing shortages, which further hinder their recovery efforts. It further emphasized that with franchisor support, hoteliers can improve the guest experience and reduce the risk of disruptive incidents.

THE U.S. SENATE on Wednesday confirmed former Georgia senator and businesswoman Kelly Loeffler to lead the Small Business Administration, the federal agency supporting small businesses with counseling, capital and contracting expertise. AAHOA congratulated Loeffler, expressing confidence that her leadership will bolster industries like hospitality, which drive the U.S. economy. Founded in 1953, the SBA supports small businesses with capital access, disaster relief, contracting opportunities, training, advocacy, and innovation programs, according to its website. "Administrator Loeffler brings a deep understanding of small business challenges and opportunities," said Miraj Patel, AAHOA chairman. "Her leadership at the SBA will be instrumental in expanding access to capital and creating new opportunities for hotel owners and small business entrepreneurs across the country."

AAHOA MEMBERS ATTENDED a virtual briefing hosted by the Biden-Harris Administration on Wednesday, addressing issues affecting small businesses and providing an update on the current economic landscape. Senior administration officials discussed federal efforts to support small business owners, including access to SBA loans, supply chain improvements, and transparency around resort and junk fees impacting the industry. Officials included White House Senior Advisor for Public Engagement Kota Mizutani; SBA Deputy Administrator Dilawar Syed; Special Assistant to the President for Economic Policy Karlin Gatton; and Special Assistant for Manufacturing and Industrial Policy Monica Gorman of the National Economic Council. "As highlighted by our speakers, a huge thank you to the members of the Asian American Hotel Owners Association and all the business leaders working to keep our economy running," said Mizutani. "Thank you for all you do."

THE U.S. SMALL Business Administration recently signed a memorandum of understanding with India's Ministry of Micro, Small, and Medium Enterprises to boost the two countries' MSME participation in the global marketplace. The five-year agreement is the SBA's first collaboration with India and focuses on investment, commercialization, supply chains and future trade opportunities. AAHOA praised the agreement, highlighting the importance of U.S.-India collaboration in supporting small businesses, including hotels. The MOU was signed by SBA Administrator Isabel Casillas Guzman and India's Ministry for MSMEs in New Delhi on Aug. 13. "The United States-India partnership is grounded in shared values of democracy, freedom, and opportunity, and through our new MOU with the Indian Ministry of MSMEs, the SBA is delivering on President Biden and Prime Minister Modi's outlined commitment to expanding our collaboration on empowering more small businesses and innovative startups in the global marketplace," said Guzman. "From advancing technology to supporting inclusive growth for women and other underserved entrepreneurs, we look forward to working alongside our counterparts to ensure entrepreneurial ecosystems are at the center of both countries' efforts to strengthen investment, commercialization, supply chains, and trade in industries of the future."

DONALD TRUMP WILL return to the U.S. presidency for a second, non-consecutive term in January, making him the first to do so since Grover Cleveland. Hotel associations such as AAHOA and the American Hotel & Lodging Association were quick to offer congratulations. In September, both groups were in Washington, D.C., to advocate for legislation important to the industry. Some of the proposed legislation that AHLA is supporting include: The Closing the Workforce Gap Act would replace the arbitrary annual cap of 66,000 available H-2B temporary visas with a new, needs-based system. Extending a pass-through tax deduction, 199A, which is set to expire in 2025 and provides tax relief to franchisees and other hotel small businesses. Maintaining the like-kind exchange, section 1031, which allows hoteliers to defer capital gains taxes when they sell one property if they roll the proceeds into the purchase of a larger one. According to AHLA, the exchange helps create new jobs and contributes to economic growth. The Hotel Fees Transparency Act and the No Hidden FEES Act would establish a single and transparent standard for mandatory lodging fee display and an even competitive playing field for hotels, short term rentals, online travel agencies, and metasearch sites.

MORE THAN A thousand hotel owners, workers and small business owners from the newly formed "Protect NYC Tourism Coalition" rallied on the steps of New York's City Hall on Sept. 12 to protest the city council's "Safe Hotels" bill. The coalition also sent a letter urging the council to reject the bill, also known as "Int. 991", arguing that the bill threatens the sustainability of New York City's hotel and tourism industries and jeopardizes the livelihoods of thousands of workers. The coalition includes members from AAHOA, the American Hotel & Lodging Association, the Hotel Association of New York City, the Real Estate Board of New York, the Coalition for Hotel Subcontractors, the NYC Minority Hotel Association, the National Association of Black Hotel Owners, Operators, and Developers, along with other groups and stakeholders supporting New York City's tourism industry. First introduced by Councilwoman Julie Menin over the summer, Int. 991 is presented by supporters as a "simple licensing bill." Opponents argue it would impose operational mandates that could drive many hotels out of business, jeopardizing 42,000 hotel jobs and nearly 260,000 jobs supported by the industry, along with billions in revenue for New York City.

THE NATIONAL LABOR Relations Board recently withdrew its appeal of a Texas judge's ruling blocking its joint employer rule that would have broadened the shared responsibility for employees between franchisers and franchisees. Opponents of the rule said it would have damaged small businesses, including hotels, while President Joe Biden's administration said it would better enable employees to protect their rights. On Friday, the NLRB asked the U.S. Court of Appeals for the Fifth Circuit to dismiss its challenge, saying it believes the rule is lawful but wants "to consider options for addressing the outstanding joint employer matters before it," according to Bloomberg Law. The appeal had been related to a March 8 ruling in a lawsuit filed in the U.S. District Court for the Eastern District of Texas by the American Hotel & Lodging Association, the U.S. Chamber of Commerce and other business associations challenging the rule's legality.