What are Referral Chain Hotel?

I kind of know what they are but how and why are they formed and what about adherence to operating standards apart from using a common logo. I believe Best western and Choice Hotels are among the biggest out there

A few more details to understand the entire concept more clearly.

I try to make it simple, like Best Western, a hotel pays them an annual-based money to sign a contract to use their logo, and other intellectual properties, Best Western wont appoint management for the hotel (a main difference from Marriott,IHG or others), and Best Western will sell rooms for the hotel, and the hotel will pay commissions for this, production based, no booking, no pay, not including in the annual fee(still different from Starwood or IHG). Sustaining quality estimate of the hotel will be performed by Best Western through guest satisfaction survey, on-site evaluation, etc.., More score the hotel get, less fee the hotel has to pay next year and more resource may be allocated. so thats all from me.

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So ths is the main difference! This means that SOPs and styles will differ greatly across Referal Chain hotels while in other chain operations like Marriott etc it is more of a business format franchise and one can expect much more uniformity across units

Is this right?

What then is a Management Contract and how is it different from a regular franchising contract ?

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