Does the definition of 'Competitor' for Embassy Suites include franchisees of competing brands?

According to Embassy Suites's 2025 Franchise Disclosure Document, the definition of 'Competitor' specifically excludes franchisees of competing brands. The FDD states that a 'Competitor' is any individual or entity that owns, licenses, or franchises a Competing Brand, but explicitly excludes those who are franchisees of a Competing Brand.

This exclusion has important implications for prospective Embassy Suites franchisees. It means that simply being a franchisee of another hotel brand does not automatically classify an individual or entity as a 'Competitor' under the terms of the Embassy Suites franchise agreement. This distinction is relevant in the context of transfers, renewals, and other contractual obligations where competitive concerns might arise.

However, the definition does include individuals or entities that own in whole or in part, or are the licensor or franchisor of a Competing Brand. Furthermore, the exclusion for franchisees of a Competing Brand has some caveats. An individual or entity that manages a Competing Brand hotel, so long as the individual or entity is not the exclusive manager of the Competing Brand, or owns a minority interest in a Competing Brand, so long as neither that individual or entity nor any of its Affiliates is an officer, director, or employee of the Competing Brand, provides services (including as a consultant) to the Competing Brand, or exercises, or has the right to exercise, Control over the business decisions of the Competing Brand, is not considered a competitor.