Hotel Express
International (HEI) distributors operate in a region or
country as sales representatives for the HEI program. Also,
they are partly responsible for acquiring hotels in their
territory, in close cooperation with the Head Office in
Kristiansand - Norway, where the hotel database is maintained.
A distributor
operates as a franchisee, with memberships being sold on
royalty basis on behalf of the Head Office. There are three
types of distributorships available:
-
Exclusive distributor
-
Non-exclusive distributor
-
Internet sales (Affiliate program)
or a
combination of 1 and 3 or 2 and 3.
Exclusive
distributors pay a licence fee to obtain exclusivity and then
have a minimum performance demand, i.e.. a minimum royalty fee
to pay per month. However, the royalty per memberships is
lower than that of the non-exclusive distributors. Contract
periods are normally 5 years with renewals, with specific
regulations for consequences of breach of contract etcetera.
Non-exclusive
distributors do not have monthly minimum performance demands,
and they pay a higher royalty per membership than the
exclusive distributors. Upon signing of contract a minimum
membership purchase must be made, and contracts can be
terminated within 3 months.

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