Six Continents franchisees have threatened to cancel their agreements or demand renegotiated terms in the event of a takeover.
"We believe this would be the absolute worst time for change of control with the company," said Jay Fisherman, chairman of the International Association of Holiday Inn franchisees, representing 2,500 hotels.
In a statement he added that many franchisees would consider terminating their licence agreements and leave the system in the event of a takeover.
The announcement came as Hugh Osmond's investment vehicle, Capital Management and Investment, formalised its £5.5b bid for Six Continents this week, promising shareholders 36 CMI shares for each Six Continents share and up to 32,124 million new shares in total.
Analysts expect shareholders, some of whom have expressed dissatisfaction with current management, to hold out until the company is split into InterContinental Hotels and Mitchells & Butlers in the hope of higher returns. It is expected that a Safeway-style bidding war will ensue, drawing numerous bids from players such as Blackstone, Marriott, Hilton and Starwood.
Meanwhile, there is growing anxiety among franchisees who complain that they are being kept out of the picture and fear the support and relationship between them and the head office could be severely damaged.
Ewan Campbell, sales and marketing director of BDL Management, which has franchise agreements for two Holiday Inns and five Holiday Inn Express hotels across the UK, said his company would want to renegotiate franchise fees in the event of a takeover. "We've become closer to Six Continents over the last 18 months and anything that disrupts that development is not good," he said.
Steven Roberts, group general manager of Centre Island Hotels, which has Crowne Plaza and Holiday Inn franchises from Six Continents in Merseyside and Ashford, Kent, said: "We just don't know what the outcome will be. We have had positive support from Six Continents, but we don't know what would happen if another hotel company took over."
Some franchisees felt that the Holiday Inn brand had been devalued, despite being such a huge part of Six Continents' hotel business.
"Six Continents used to be a franchiser community and its bread and butter came from growing their franchisee companies. But the whole balance of their thought process has changed. The shift took place after the acquisition of Posthouse. Since then the Holiday Inn brand has been devalued," said Ronnie Cameron, general manager of the Holiday Inn in Kensington, London.
Shareholders are due to meet next Wednesday (12 March) to vote on the demerger issue.
By Christina Golding