What does 'Brand' mean in the context of the Embassy Suites Restricted Area Provision?

According to the 2025 Embassy Suites Franchise Disclosure Document, the term 'Brand' within the Restricted Area Provision refers specifically to the name used to identify the chain of hotels operated under the same Chain Code and Standards as the franchised Embassy Suites hotel. This definition is important for franchisees to understand the scope of their territorial protection, if any is granted. The Restricted Area Provision, if included in the Franchise Agreement, aims to limit the operation of other hotels under the same 'Brand' within a defined geographical area and during a specific time period, known as the Restrictive Period.

However, the definition of 'Brand' explicitly excludes other brands or product lines that might contain the word "Embassy" in their name, ensuring that the restriction applies narrowly to hotels operating under the Embassy Suites system. Furthermore, the definition excludes Hilton Worldwide Holdings Inc., its affiliates, and other hotel chains that include the word "Hilton" as part of their brand name, such as "Hilton Garden Inn," "DoubleTree by Hilton," or "Homewood Suites by Hilton." This clarification is crucial because Hilton Worldwide is the parent company of Embassy Suites, and this exclusion allows Hilton to operate its other hotel brands without being restricted by the Embassy Suites franchisee's Restricted Area Provision.

This means that while an Embassy Suites franchisee may receive some protection against direct competition from another Embassy Suites hotel within their Restricted Area, they will not be protected from competition from other Hilton-affiliated brands or other hotel chains, even if those brands operate similar types of hotels. Prospective franchisees should carefully consider this limited protection when evaluating the potential for competition in their market area. They should also be aware that the Restricted Area Provision is not always granted and may be subject to certain exclusions, such as hotels already open or approved for development as of the effective date of the Franchise Agreement.