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HOWARD JOHNSON REDUCES ITS ROYALTIES TO INCREASE ITS MARKETING FUND

 HOWARD JOHNSON REDUCES ITS ROYALTIES TO INCREASE ITS MARKETING FUND
 PARSIPPANY, N.J., May 8 /PRNewswire/ -- Howard Johnson Franchise Systems, Inc., today announced that in order to increase the Howard Johnson marketing fund it will change its current fee structure of 5 percent royalty and 1 percent marketing fee to 4 percent royalty and 2 percent marketing fee. This represents a strong commitment by Howard Johnson's ownership and leadership to brand marketing for the Howard Johnson system, one that no other major franchising organization has made in many years.
 The idea to move one percent out of royalties and into the Howard Johnson marketing fund was the suggestion of Henry R. Silverman, chairman and chief executive officer of Hospitality Franchise Systems, Inc. (HFS), Howard Johnson's parent company.
 "As the Howard Johnson brand continues to grow, the additional 1 percent that Howard Johnson will contribute to the marketing fund will represent a substantial increase in the number of dollars specifically available for brand marketing," said Eric Pfeffer, president and chief operating officer of Howard Johnson Franchise Systems.
 "Our 'Basics to Brilliance' five-year plan to double the size of the Howard Johnson brand predicts 15 percent compound annual growth," continued Pfeffer. "We achieved 25 percent growth in 1991, and I am confident that we will experience a repeat performance in 1992 and in the years ahead, particularly now with the change in our fee structure."
 Howard Johnson is already achieving success with its current marketing programs, such as:
 -- Kids Go HoJo: Now in its third year, this is Howard Johnson's innovative, award-winning summer travel promotion for families. Through and exclusive arrangement, this summer's program will feature the Little Rascals characters, providing free games, puzzles, and other fun to amuse children while traveling. Throughout the summer, most Howard Johnson properties will offer low sale rates from $25 to $59. Plus, children under 18 stay free.
 -- America Turns to Orange: A 'Turn to Orange and Win' giveaway and sweepstakes is running from February 15 to May 15. All Howard Johnson properties are offering guests free, bright orange neon sports packs with two stays at any Howard Johnson property. Guests can enter a sweepstakes to win thousands of great prizes, including the grand prize -- a brand new Chevrolet Geo Tracker. A special sale rate of $29 to $59 (at participating properties) is also being offered.
 Howard Johnson Franchise Systems, Inc., a subsidiary of Hospitality Franchise Systems, Inc., is a chain of approximately 550 Hotels, Plaza- Hotels, Suites, Lodges, and HoJo Inns throughout the United States, Canada and Mexico. The toll-free reservations number is 1-800-I-GO-HOJO (1-800-446-4656). the reservations number for travel agents is 1-800-654-4636.
 -0- 5/8/92
 /CONTACT: Lisa Garb of Howard Johnson, 201-952-8439/ CO: Howard Johnson Franchise Systems Inc. ST: New Jersey IN: LEI SU:


TS-LR -- NY036 -- 8069 05/08/92 11:56 EDT
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Publication:PR Newswire
Date:May 8, 1992
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