Is concealing revenues or submitting false reports to Embassy Suites grounds for termination?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (“FA”), Spa Amendment and HITS Agreement | Summary |
|---|---|---|
| FA §13.2 (9) | you conceal revenues, maintain false books and records of accounts, submit false reports or information to us or otherwise attempt to defraud us; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, concealing revenues or submitting false reports is grounds for termination of the franchise agreement. Specifically, if a franchisee conceals revenues, maintains false books and records, submits false reports, or attempts to defraud Embassy Suites, the franchisor has grounds to terminate the agreement.
This provision is included in Section 13.2 (9) of the Franchise Agreement. This is a fairly standard clause in franchise agreements, as the franchisor relies on accurate financial reporting from franchisees to calculate royalties and maintain the integrity of the brand.
For a prospective Embassy Suites franchisee, this means maintaining transparent and accurate financial records is critical. Any attempt to manipulate financial data, even if seemingly minor, could lead to the termination of the franchise agreement and the loss of the business. Franchisees should ensure their accounting practices are sound and in full compliance with Embassy Suites' reporting requirements.