|
|
 | | | |
- close
- close
- close
- close
| |||||||||
RLH » Topics » If our franchisees terminate or fail to renew their relationship with our company, our franchise revenue will decline.These excerpts taken from the RLH 10-K filed Mar 12, 2009. If our
franchisees terminate or fail to renew their relationship with
our company, our franchise revenue will decline.
As of December 31, 2008, there were 15 hotels in our system
that were owned by others and operated under franchise
agreements. Franchise agreements generally specify a fixed term
and contain various early termination provisions, such as the
right to terminate upon notice by paying us a termination fee.
We cannot assure shareholders that these agreements will be
renewed, or that they will not be terminated prior to the end of
their respective terms.
All franchised hotels were required to meet Red Lion upscale
brand standards by the end of 2007. The majority of hotels met
the standards by the end of 2007, while some are still in the
process of completing renovations. We believe as of
December 31, 2008, all but two of our current franchisees
are either in full compliance with our enhanced brand standards
or making sufficient progress. Subsequent to December 31,
2008, one of those franchisees — located in
Winnemucca, Nevada — had its franchise agreement
expire and it was not renewed. That hotel has since left our
system. We are monitoring the work of the other franchisees and
will terminate hotels for non-compliance if satisfactory
progress does not continue. If these or other franchise
agreements are not renewed, or are terminated prior to the
expiration of their respective terms, the resulting decrease in
revenue and loss of market penetration could have an adverse
effect on our results of operations and financial condition.
If our franchisees terminate or fail to renew their relationship with our company, our franchise revenue will decline. As of December 31, 2008, there were 15 hotels in our system that were owned by others and operated under franchise agreements. Franchise agreements generally specify a fixed term and contain various early termination provisions, such as the right to terminate upon notice by paying us a termination fee. We cannot assure shareholders that these agreements will be renewed, or that they will not be terminated prior to the end of their respective terms. All franchised hotels were required to meet Red Lion upscale brand standards by the end of 2007. The majority of hotels met the standards by the end of 2007, while some are still in the process of completing renovations. We believe as of December 31, 2008, all but two of our current franchisees are either in full compliance with our enhanced brand standards or making sufficient progress. Subsequent to December 31, 2008, one of those franchisees — located in Winnemucca, Nevada — had its franchise agreement expire and it was not renewed. That hotel has since left our system. We are monitoring the work of the other franchisees and will terminate hotels for non-compliance if satisfactory progress does not continue. If these or other franchise agreements are not renewed, or are terminated prior to the expiration of their respective terms, the resulting decrease in revenue and loss of market penetration could have an adverse effect on our results of operations and financial condition. These excerpts taken from the RLH 10-K filed Mar 13, 2008. If our
franchisees terminate or fail to renew their relationship with
our company, our franchise revenue will decline.
As of December 31, 2007, there were 21 hotels in our system
that were owned by others and operated under franchise
agreements. Franchise agreements for three hotels expired
subsequent to that date and will leave our system of hotels
during 2008. In addition, one hotel under a management contract
expired subsequent to that date and has since left our system of
hotels.
Franchise agreements generally specify a fixed term and contain
various early termination provisions, such as the right to
terminate upon notice by paying us a termination fee. We cannot
assure shareholders that these agreements will be renewed, or
that they will not be terminated prior to the end of their
respective terms.
All franchised hotels were required to meet Red Lion’s
upscale brand standards by the end of 2007. Currently, we expect
sixteen franchised hotels to meet our elevated brand standards.
We anticipate that between two and four franchised hotels may
not meet the elevated brand standards, which may result in the
termination of these franchises in the first half of 2008. If
these or other franchise agreements are not renewed, or are
terminated prior to the expiration of their respective terms,
the resulting decrease in revenue and loss of market penetration
could have an adverse effect on our results of operations and
financial condition.
If our franchisees terminate or fail to renew their relationship with our company, our franchise revenue will decline. As of December 31, 2007, there were 21 hotels in our system that were owned by others and operated under franchise agreements. Franchise agreements for three hotels expired subsequent to that date and will leave our system of hotels during 2008. In addition, one hotel under a management contract expired subsequent to that date and has since left our system of hotels. Franchise agreements generally specify a fixed term and contain various early termination provisions, such as the right to terminate upon notice by paying us a termination fee. We cannot assure shareholders that these agreements will be renewed, or that they will not be terminated prior to the end of their respective terms. All franchised hotels were required to meet Red Lion’s upscale brand standards by the end of 2007. Currently, we expect sixteen franchised hotels to meet our elevated brand standards. We anticipate that between two and four franchised hotels may not meet the elevated brand standards, which may result in the termination of these franchises in the first half of 2008. If these or other franchise agreements are not renewed, or are terminated prior to the expiration of their respective terms, the resulting decrease in revenue and loss of market penetration could have an adverse effect on our results of operations and financial condition. This excerpt taken from the RLH 10-K filed Mar 16, 2007. If our
franchisees terminate or fail to renew their relationship with
our company, our franchise revenue will decline.
As of December 31, 2006, there were 25 hotels in our system
that were owned by others and operated under franchise
agreements, which generally specify a fixed term and contain
various early termination provisions, such as the right to
terminate upon notice by paying us a termination fee. We cannot
assure shareholders that these agreements will be renewed, or
that they will not be terminated prior to the end of their
respective terms. If these franchise agreements are not renewed,
or are terminated prior to the expiration of their respective
terms, the resulting decrease in revenue and loss of market
penetration could have an adverse effect on our results of
operations and financial condition.
| EXCERPTS ON THIS PAGE:
|
| |||||||
