Press Releases

FOR IMMEDIATE RELEASE - January, 15, 2001

US Franchise Systems First Hotel Franchisor to Receive Fair Franchising Seal from AAFD

San Diego, Ca. The American Association of Franchisees and Dealers(AAFD) has announced that is is awarding its prestigious Fair Franchising Seal to Atlanta-based US Franchise Systems, Inc.(USFS) and its Microtel, Best Inns and Hawthorn Suites brands. USFS is the first hotel company to receive the Seal.

The Fair Franchising Seal is awarded to franchisors by their own independant franchisee association or franchisee association or Franchise Advisory Council as having an exemplary record of franchise practices that embody equity, fairness and service to the organization.

In order to earn the franchising seal, the nominated company's franchise agreement must be consistent with the spirit of the AAFD's Fair Franchising Standards , and the company must receive approval from at least 75% of its franchisees in a confidential survey conducted by the AAFD. USFS's franchise agreement received a rating of 88% conformance to the AAFD's Fair Franchising Standards, the highest grade ever given by the AAFD's Standards Committee, and USFS franchisees bvoted a resounding 98% in favor of granting the award.

US Franchise Systems is one of the nation's fastest growing hospitality systems, in part due to its reputation for treating franchisees with respect and fairness. For example, the Company was the first to be recognized by the Asian American Hotel Owners Association(AAHOA) for exemplary franchise practices and has also been cited by the American Hotel Foundation and American Express for its fair franchise agreement.

"We are very proud to have been nomiated and honored with this distinguished seal," said Mike Leven, chairman and CEO of USFS. "It is particularly meaningful because our franchisees were the ones to vote for us to receive the AAFD Seal, a recognition that reflects on fairness and what I believe to be the backbone of our entire organization."

Commented Robert Purvin, chairman of the AAFD, "The importance of the AAFD Fair Franching Seal is that it rewards exemplary practices in the franchising marketplace. With the Seal, franchise buyers have a legitimate standard by which to judge a franchise opportunity -- an affective vote of confidence and approval by the system's own franchise owners."

According to Richard L. Rosen, Chariman of the AAFD Fair Franchising Standards Committee, "The members of the Standards Committee are gratified that the AAFD's Fair Franchising Seal has been awarded to US Franchise Systems. The Fair Franchising Standards were promulgated to set guideposts along which franchisors and franchisees could travel to reach a more equitably balanced relationship. The awarding of the Seal to USFS is another indication that Fair Franchising is not only attainable but, in many cases, a reality."

USFS, founded in 1995, franchises Microtel Inns & Suites, a chain of all newly-constructed, budget hotels, Hawthorn, a predominantly upscale extended-stay chain, and Best Inns & Suites, an economy/mid-priced chain. System-wide, there are nearly 600 properties open or under construction in 49 states and intenationally.

The American Association of Franchisees and Dealers is the oldest and largest direct member non-profit trade association representing the interests of franchisees and independent dealer networks throughout the United States. Stressing market solutions and franchisee empowerment through independent franchisee associations, the AAFD has grown to represent more than 12,000 franchised businesses nationwide.

For more information, contact the AAFD at 800-733-9858, or visit our website.