Challenge
Choice Hotels is a franchisor, not the owner-operator or employer of the hotel properties. Their Qualified Vendor program provides guidance from vetted suppliers to best serve their franchisees and makes sure all such products and services meet the standards of the franchise. Our Professional Employer Organization is represented by leaders in hospitality management, achieving the highest honors for professional excellence in the industry, including Certified Master Hotel Suppliers, CHA’s and world-class developers with > 20 years’ experience managing hotel properties.
- Choice franchisees and hospitality management companies must have access to industry leading vendors that can provide the most cost effective solutions to mitigate the aggregate cost of labor so that owners and hospitality management companies can focus on RevPAR and growing their business.
- The franchisor cannot directly or indirectly guide the employer/employee relationship of franchisees. Choice franchisees need vetted suppliers to help such independently owned and operated entities control the aggregate cost of labor, mitigate employer liability and attract and retain top talent. The franchisor vets qualified vendors who best meet the needs of its leading franchisees and best serve the dynamisms and diversity of such cohort.
- Many Choice franchisees need to reduce aggregate labor cost, reduces employer risk and increases profitability across their portfolio. Since most PEO’s were not originally designed for hospitality management and/or not most cost-efficient to best serve the dynamisms and diversity of the Choice Hotels cohort, the majority of Choice franchisees were serving as source of the wage, paying for multiple vendors across payroll, HR software and insurance procurement solutions while assuming sole liable as the employer of record. In addition, many franchisees need to attract and retain top talent as Employers of Choice through industry leading Recruitment Process Outsourcing (RPO), designed for hospitality management.