Hendry, who won the Premier League title at Ewood Park, has spoken out about Rovers' current impasse with Hoilett as they bid to tie him down to a longer contract.
Hendry is well aware that Rovers will be reluctant to include a get-out clause after Manchester United took advantage of Phil Jones' release figure by snapping him up for ?16million in the summer.
However, he feels that the club are at the stage where they will have to bow to the Hoilett's demands or face the prospect of the Canadian starlet leaving Rovers for a fraction of his valuation at the end of the season.
Hendry told the Lancashire Telegraph: "Rovers did have their fingers burned over the price for Jones because he has already shown he is worth a lot more and you can understand fans will be worried the same could happen over Junior.
"Hoilett is so far down the line in terms of his current contract though that the club have little option but to agree to a clause if that is what the player wants. Because otherwise they could lose him for a lot less come the summer.
"The key is to make sure that trigger price is good business. Then if one of the big clubs come in for him then you just have to accept it is inevitable the player will leave, but at least you get good money for him.
"The changes that have been made at the club have been part of the problem because opinions have changed about players as different people come in.
"We are at the stage now that if Hoilett wants a clause in his contract then the club can't do anything about it."
Source: Team Talk