Business Intelligence on Retailing, Franchising, and Consumerism in China

Super 8 Franchisee In Hangzhou Shifts To Hanting Hotels

Unsatisfied with Super 8's opening of new hotels near his hotels, a franchisee of Super 8 who owns three Super 8 hotels in Hangzhou, has now joined Hanting Hotels, a rival of Super 8.

According to news reports on China Finance Online, the franchisee was among the first batch of Super 8's supporters in China. When Super 8 entered the Chinese market in 2004, he opened Hangzhou Hemei Super 8 Hotel in the same year and reportedly assisted Super 8 in opening up to six other hotels in Hangzhou.

The franchisee has told local media that he was the first real franchisee for Super 8 in China and had signed a three-year exclusive agreement with Super 8 China on opening hotels in Hangzhou in 2005 in which they agreed that Super 8 must consult with him when opening a new hotel in Hangzhou. However, in April and July this year, without his knowledge, Super 8 reportedly opened two new hotels which were said to be too close to his own hotels, which infuriated him and resulted in his shifting to Hanting Hotels.

As the agreement he signed with Super 8 did not cover compensation in case of infringement, the franchisee said he might not get compensated even though Super 8 violated the exclusive agreement. However, he said he had been asked by Super 8 to pay tens of thousands of yuan as he was accused of breaching the agreement by joining Hanting. He says he is preparing for a court hearing.

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