What actions is an Embassy Suites franchised prohibited from taking with the Incentive funds?

According to Embassy Suites's 2025 Franchise Disclosure Document, a franchisee is prohibited from using any portion of the Incentive to make, offer, or authorize any Improper Payment or engage in any act violating any Anti-Corruption Law. This means that the Incentive funds provided by Embassy Suites cannot be used for any illegal or unethical activities, such as bribery or corruption, that would violate anti-corruption laws.

Embassy Suites retains the right to monitor the use of Incentive funds to ensure compliance with these regulations. If Embassy Suites reasonably believes that a franchisee has violated any Anti-Corruption Law, the franchisee must cooperate with reasonable requests for information and permit Embassy Suites to inspect all books and records pertaining to the Hotel. This allows Embassy Suites to investigate any potential misuse of funds and take appropriate action if necessary.

This condition is in place to protect the integrity of the Embassy Suites brand and ensure that franchisees operate ethically and legally. It also aligns with standard business practices that require companies to comply with anti-corruption laws and prevent the misuse of funds for illegal activities. Franchisees should be aware of these restrictions and ensure that they use the Incentive funds appropriately to avoid any potential legal or financial repercussions.