The Registry Collection Hotel Franchise

Financing Details

Registry Collection Hotels offers several financing options to its franchisees. The company may defer payment of the Affiliation Fee, typically for up to 90 days or until the facility opens, with no interest unless the franchisee defaults. Additionally, Registry Collection Hotels offers 'Development Incentives,' which are loans for new construction and conversion facilities. These incentives are not repaid unless the membership agreement terminates or is transferred before its term ends; otherwise, one-twentieth of the original loan amount is forgiven annually, becoming fully forgiven by the end of the term. These development incentive loans bear no interest unless there is a default, at which point the interest rate is 18% per annum. Special financing programs, such as the 'Women Own the Room' (WOTR) Development Incentive, are available for women entrepreneurs, targeting $2,500 per guest room, up to 50% of the franchisee's equity investment, under the same terms as other development incentives. The 'Black Owners & Lodging Developers' (BOLD) Support program may also include a Development Incentive. Registry Collection Hotels does not sell, assign, or discount these financing arrangements to third parties. Franchisees may also request a Lender Notification Agreement for external financing, but the company is not obligated to enter into such agreements.

Litigation Summary

Registry Collection Hotels itself has no pending litigation. However, its parent company and affiliates have several pending lawsuits. Three class action lawsuits were filed in 2024 concerning alleged price fixing and unfair competition in the extended stay hotel market, involving the use of revenue management software. One additional class action from 2014, regarding a 'Destination Marketing Fee' in Canada, remains pending. Six other lawsuits against the parent or affiliates, filed between 2012 and 2018, have been resolved between 2015 and 2020, covering issues like consumer fraud, resort fees, and privacy violations related to call recording. No litigation has been commenced against Registry Collection Hotels franchisees in the past fiscal year.

Renewal Conditions

Registry Collection Hotels does not grant automatic renewal or extension rights. However, if the franchisor and franchisee elect to renew the membership, the franchisee must apply for renewal between six and nine months before the expiration date. To renew, the franchisee must sign the then-current Membership Agreement, which may include terms and conditions that are materially different from their original agreement. Additionally, the franchisee must pay the then-current Reaffiliation Fee, which is calculated using the same formula as the initial Affiliation Fee, and complete a property improvement plan to meet current standards. The franchisee is also required to execute a general release of Registry Collection Hotels and its affiliates.

Staffing Notes

Registry Collection Hotels does not require franchisees to personally manage the facility, though it is recommended. If the franchisee chooses not to manage directly, they must hire a management company or an individual manager with significant training and experience in general management of similar lodging facilities. This general manager must successfully complete the franchisor's training program. The franchisee is entirely responsible for all employment decisions, including hiring, firing, scheduling, and personnel policies for their facility. All personnel designated to receive training must attend and complete required programs. This includes specific training for all team members on the 'Count on Us' program, covering introduction, overview, certification, and safe stay guidelines. Room attendants must complete specific training on cleaning, laundry procedures, and safety. If food service is provided, all applicable team members must complete food service training.