Cendant Franchisees Can't Rest on their Laurels

Cendant is the franchisor of a number of quality hotel brands, mainly clustered around the economy/mid-range markets, including  Days Inn, TraveLodge and Super 8.  While my preference while travelling is usually to stay at hotels with massive beds made up with imported sheets, a fun lounge and a fully stocked minibar, I've always had very good experiences staying at Cendant franchised hotels.  Cendant has clearly recognized the importance of one of the key ingredients of a franchise system's success or failure; that is the maintenance of a uniform level of quality across a system's franchised units. 

Franchisors need to be particularly vigilant about ensuring that franchisees are living up to the standards set by the franchisor, as the system could thrive or die based on the public's perception of the brand itself.  Non-compliant franchisees can easily drag down the reputation of an entire brand.

This can be particularly true for hotel franchises systems, each of which will be somewhat unique based on factors such as locale and market.  However, if franchisors stay on top of quality control and brand management issues, brand recognition and value will increase (and with it, occupancy rates and revenue).

As this MSNBC article indicates, Cendant is well into its "Project Restore" program to increase brand uniformity, identity and public perception across its various brands.  Part of any such program is necessarily terminating (or more likely, opting not to renew) the franchise agreements with franchisees who do not live up to the systemwide standards of quality, service, etc. that are set by the brand.

As part of Project Restore, Cendant has dropped between 580 and 600 underperforming properties from its brands.  Cendant franchisees who wish to continue benefitting from the strong brand recognition that accompanies the flying of a Cendant flag, may be losing some sleep until their properties are brought up to Cendant's standards.