On what does the boundaries of the Restricted Area for an Embassy Suites franchise normally depend?

According to Embassy Suites's 2025 Franchise Disclosure Document, the boundaries of a franchisee's Restricted Area typically depend on the relevant market in the immediate area and the competitive circumstances present in that market at the time the Franchise Agreement is signed. This means that the size and shape of the Restricted Area can vary significantly from one Embassy Suites hotel to another, as it is tailored to the specific conditions of each location.

The FDD specifies that these boundaries are not determined by any standard formula. Instead, they may be delineated in various ways, including references to geographical and political divisions like cities, metropolitan areas, or counties. Alternatively, the boundaries could be defined by references to streets, highways, or an area encompassed within a specified radius from the hotel's front door.

For a prospective Embassy Suites franchisee, this means that the extent of territorial protection they receive, if any, will be highly dependent on the specific location they choose and the competitive landscape at that time. It is crucial for franchisees to carefully evaluate the proposed Restricted Area and understand how it will impact their ability to compete effectively in the local market. Franchisees should also be aware that Embassy Suites and its affiliates retain the right to provide services and support to competitive lodging businesses, even within the Restricted Area, which could further impact the franchisee's competitive position.