What is the applicant's representation regarding inducement by Hilton Worldwide to terminate or breach agreements related to the location 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.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, as part of the franchise application, the applicant represents that neither they nor their affiliates have been induced by Hilton Worldwide to terminate or breach any existing agreements related to the proposed location of the Embassy Suites hotel. This representation is a condition that the applicant makes when applying for a franchise.
This means that Embassy Suites, as part of its application review, wants to ensure that prospective franchisees are not being influenced by Hilton Worldwide to break existing contracts or agreements concerning the location of the hotel. This protects Hilton Worldwide from potential legal issues arising from interference with other agreements.
For a potential Embassy Suites franchisee, this requirement means they must be certain that their pursuit of the franchise and the proposed location does not involve any breach of prior agreements due to influence from Hilton Worldwide. Failing to meet this condition could jeopardize their application and potentially lead to legal complications.