The oldest industry franchisee association in the United States, ELFA was formed in 1974 as the result of a group of franchisees who met in Norfolk, Virginia to share their mutual concerns. Here’s how the organization came to be:
In the late 1960’s, a group of Norfolk, Virginia businessmen headed by Vernon Myers and Lloyd Tarbutton recognized a need for inexpensive lodging. They determined that they could meet that need by avoiding frills and designing a building which could be economically constructed. The first Econo Travel Motor Hotel’s were newly constructed with forty-eight rooms and a manager’s apartment at a cost of between $4,000 and $5,000 per room.

In a franchisee newsletter published in 1972, guests recommended many items be made available in the rooms (many of whom at the same time, complimented us on our low rates) which included: stationery, pens, mirrors in the shower for shaving, free coffee, Styrofoam ice buckets, clocks, reading lamps, piped in music, radio, and small refrigerators. Although these were valid requests, the Company maintained that our guests preferred lower rates rather than extra frills, and felt that "we can’t have the right price and these items, too."
They later went public with an IPO being issued through the State of South Carolina. Based upon problems which arose from the offering, a majority of the interests of the various partners was conveyed to Lloyd Tarbutton in trust in order for him to control Econo Travel entirely. Tarbutton remained the president and the controlling stockholder until 1974. The Company grew quite rapidly during this period of time with its growth being based almost entirely on the sale of franchises.

In 1973, the motel industry and the country as a whole faced a serious economic problem when the Arab countries developed an oil embargo which severely impacted many industries. During that time, financial borrowing dried up for new motel construction of any kind. This had a severe impact on many of the franchisees because the fear of not being able to get gasoline kept people from traveling. During this period of time, a franchisee, David Drapella, called a meeting in Norfolk, Virginia, where Econo Travel was based, to discuss what could be done to save the franchisees and the Company, which no longer had income from franchise sales.
In 1974, Econo Travel began accepting applications for hotel properties to be converted to the Econo Lodge brand. This step was taken because no one could finance new construction. However, conversions made the whole concept of inexpensive rooms more difficult to achieve.
A second meeting was held to form the Econo Travel Franchisee Association, Inc. which incorporated in 1975. Frank Young was named as the president of the association. It was decided that the best thing we could do was try to develop a cooperative effort between the Company and the franchisees to allow us to get through a very trying time. After some negotiation, it was agreed that several franchisees would be placed on the Company board and that they would negotiate a new franchise contract that would substantially lessen the franchise fees in order for the Company to stay alive. These individuals were all multi-property owners, and it was felt that Econo Travel’s goals needed to temporarily shift from selling franchises to aiding its franchisees operationally. The franchisee board members developed seminars and started educational programs to help both new and old franchisees and to instruct the Company on operational issues.

At the 1975 annual meeting, Lewis Allen, Robert Beck, J. Darby Wood and Frank Young were nominated and accepted as members of the Company Board of Directors. At that time, Tarbutton made the statement, "We feel this move will bring added strength to our overall operation, in that what is good for our franchisees must also be good for the entire company. I am looking forward to a solid relationship that will continue the pattern of growth which we have enjoyed in the past." The Econo Lodges of America Franchisee Association, Inc. was the first industry franchisee association, and the cooperative effort between the Company and the association was unprecedented. The combined effort worked out very well. The franchise fee was lowered by more than one-half, distressed properties were given distressed rates, and a number of other economic changes were made which benefited the franchisees.
Another result of these meetings was the appointment of Robert Weller, an early employee of Econo Travel, as the president of the Company. Weller was formerly the licensing director of Econo Travel. Weller had the ability to lift the spirits of a Company going through difficult times. Through his guidance, the Company grew quite rapidly and retained a close relationship with the franchisees who, after negotiating a new contract, had voluntarily reduced its number on the board from four to two.
As a result of the growth of the organization, a voluntary contribution of $100,000.00 was made by the association in 1979 in order to fund a fall advertising campaign which would not have been possible without that contribution. The franchisees have, in turn, worked hard to help the Company over its rough times. At the request of the association, several multi-property franchisees pre-paid franchise fees in order to carry the Company through economic slump difficulties in the 1970’s.

The Econo Lodges of America Franchisee Association, Inc. [ELFA] is a self-sustaining organization with more than 30 years of experience representing the interests of its dues-paying members throughout the United States. The goal of the organization is to help each franchisee maximize the value of their property through networking and the sharing of creative ideas as well as time and money saving tips.

ELFA offers a forum to share information beneficial to both franchisees and Choice Hotels International (CHI) which, in turn, will provide the highest possible quality of services to Econo Lodge franchisees and their guests. Membership allows open communications between the franchisee and Econo Lodges of America through regularly scheduled meetings. Participation in the organization and its various committees allows both parties to work to improve the Econo Lodge system. It supports Econo Lodges of America in the implementation of system-wide programs which benefit the membership and will result in the Econo Lodge brand achieving and maintaining a top position in the economy lodging industry.

We have fought hard to maintain our independence from the Franchisor, Choice Hotels International. Our boards are made up of volunteer owners, operators, who work tirelessly to protect the interests of Econo Lodge franchisees.

Today, we are just a moment away by phone, fax and e-mail to getting you connected with the information you need, either at the Franchisor or with fellow franchisees who can respond to your questions and or concerns.
Please take advantage of the electronic information at your finger tips on ELFA.org and browse through this site either to make comments in the discussion groups or get details on committee activities.

We strive to continue our long history of serving the rights of fellow Econo Lodge franchisees.