Property improvement plan

Definition

The renovation scope a franchisor requires at sale or renewal, called the PIP.

Why It Matters

A flagged hotel changes hands through the franchisor, and the franchisor uses that moment to demand the property be brought to current brand standard: new soft goods, case goods, sometimes systems and exteriors. The PIP is a six or seven figure bill that arrives with the keys, so no flagged deal prices honestly until the PIP scope is in writing from the brand, not estimated by the seller, and the financing plan carries it beside the purchase itself.