In the new AI-driven era, where data is arguably more valuable than the real estate itself, isn't it time to redefine the rules of engagement between franchisors and franchisees?.

Shouldn't guest data be owned by the party who actually owns the asset, while making it contractually accessible to the franchisor during the term of the agreement?

Here is my take:

Who owns the customer data: the franchisee or franchisor? This question is not unique to hospitality and has been debated ever since the first franchisee agreement to operate a printing shop was signed back in 1731 between Benjamin Franklin and Thomas Whitmarsh in Charleston, South Carolina.

Typically, the franchisor owns the customer data and this issue is clearly stated in the franchise agreement.

Franchisees may have access to and collect customer and other data, but the data is considered the franchisor's intellectual property (IP) to ensure a consistent brand experience. Franchisees may be required to return customer data upon termination of the agreement.

In hospitality, the guest data, including customer lists and "Guest Profile Data" (personal profiles, guest preferences, loyalty data), is treated as part of the franchisor's IP, not the franchisee's. IP is defined as including all software, data processed or stored, customer lists and proprietary marks.

Since IP ownership has been at the core of the franchisor-franchisee relationship for centuries, I do not believe this question could ever be solved in favor of the franchisees.

This is the nature of the beast - if hoteliers want to own guest and other data, there is an obvious option - remain independent.

Max Starkov
Hospitality & Online Travel Tech Consultant & Strategist

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