A independent Hilton franchise in the Minneapolis area denied reservations to ICE, immigration, and Homeland Security. People raised hell about this discriminatory action. The Hilton HQ pulled their franchise license because it violated the franchisee contract and damaged the global Hilton brand. They lost a LOT of business over it.
True, however, franchises include a statement that if a franchisee does anything to damage the image of the company, their contract can be terminated. I guess they learned the hard way because their actions affected the Hilton brand globally.