What is the applicant's obligation regarding conflicting agreements when applying for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Both Applicant and the undersigned have the authority to make the Application and to enter into a franchise agreement ("Franchise Agreement") for the proposed Hotel at the Location. Neither the making of this Application nor the execution of a Franchise Agreement will conflict with nor put Applicant in breach of the terms of any agreements to which Applicant, its affiliates or the undersigned are a party or by which Applicant or its affiliates are bound. Neither Applicant nor its affiliates have been induced by Hilton Worldwide to terminate or breach any agreement with respect to theLocation.
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- Applicant acknowledges that Hilton Worldwide and the Entities do not enter into oral agreements or understandings with respect to the Franchise Agreement, and as that of the date of this Application Letter there are no oral agreements or understandings between Applicant and Hilton Worldwide or the Entities with respect to the proposed Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, as part of the franchise application, the applicant must confirm that neither the application itself nor entering into a franchise agreement will violate any existing agreements they or their affiliates are bound by. This means the applicant must ensure that pursuing an Embassy Suites franchise does not breach any contracts, leases, or other legal obligations already in place. The applicant also confirms that Hilton Worldwide did not induce them to terminate or breach any existing agreements related to the proposed hotel location.
This requirement protects Embassy Suites by ensuring that new franchisees are free from conflicting obligations that could hinder their ability to operate the franchise successfully. It also prevents legal disputes arising from breaches of existing agreements.
Embassy Suites also requires the applicant to keep all information about the franchise confidential and to only use it if a franchise agreement is signed. The applicant also acknowledges that there are no oral agreements with Hilton Worldwide regarding the franchise agreement.