The basics:

• Opinion backs NJ’s Hotel Franchisee Fairness Act
• Proposal would expand supplier choice, pricing transparency
• Author says stronger franchise protections support tourism jobs
• Bill aims to preserve contracts while maintaining brand standards

New Jersey’s hotels are not remote corporate outposts. They are local businesses run by entrepreneurs who invest their own capital, create New Jersey jobs, pay New Jersey taxes, and power New Jersey’s tourism economy. The Hotel Franchisee Fairness and Market Access Act seeks to restore basic free-market principles – competition, transparency and enforceable contracts – to help these New Jersey small business owners.

Today, hotel franchisees are often required to buy non-guest-facing goods and services from designated vendors even when qualified competitors offer better prices and quality. The bill lets owners choose alternative suppliers that meet operational standards. It also requires full transparency when franchisors collect rebates, commissions, or other financial benefits from franchisee purchases, ensuring those gains are disclosed and shared. These are not radical ideas. They are the foundation of a competitive marketplace: sellers compete, buyers choose value, and no one is forced to subsidize hidden markups.

The legislation further protects the integrity of contracts. Material financial or operational obligations should not be imposed after the contract is signed through manuals or policies that were never clearly disclosed at the signing. Legitimate requirements for health, safety, sanitation, trademark protection, and brand integrity remain fully intact. What ends is unilateral cost-shifting by the more powerful party. That is not interference in private agreements — it is enforcement of the agreement as written; the very condition free enterprise needs to function.

Tourism: By the numbers

New Jersey taxpayers have a direct stake in making the system fair. Tourism is a cornerstone of our economy. In 2025, 124.2 million visitors spent $51.9 billion, generating $83.2 billion in total economic impact and supporting more than 514,000 jobs — 1 in every 12 statewide.

Visitor activity generated $5.5 billion in state and local tax revenue, equivalent to $1,550 in tax relief for every household. Hotels are central to that revenue through occupancy fees, sales taxes, property taxes and payroll. When local owners avoid inflated costs and unpredictable mandates, they reinvest and keep the tax base strong. Protecting them is fiscal responsibility.

When local owners avoid inflated costs and unpredictable mandates, they reinvest and keep the tax base strong.

Consumers benefit as well. Lower operating costs support competitive hotel room rates and property improvements. By preventing retaliation against franchisees who list rooms on legitimate third-party platforms, the bill expands booking options and price transparency for travelers — exactly the competition that keeps rates low and improves service.

Opponents claim this proposal interferes with private contracts or threatens brands. In reality, transparent agreements and open markets make franchisees stronger, more invested partners. Strong national brands and strong local ownership succeed together when markets remain open, and entrepreneurs can make sound investments.

New Jersey should stand with local investment, local jobs, competitive prices for travelers and a tourism economy that continues delivering substantial tax revenue for every resident. Passing this balanced reform affirms that free enterprise in this state must work for everyone.

Anthony Russo is president of the Commerce and Industry Association of New Jersey.