Does the definition of 'Competitor' for Embassy Suites include managers of competing brand hotels?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
er for a Competitor through itself or an affiliate, to manage your Hotel. If your Management Company becomes a Competitor, you will have 90 days to retain a qualified substitute Management Company that we approve.
A "Competitor" means any individual or entity that at any time during the Term, whether directly or through an affiliate, owns in whole or in part, or is the licensor or franchisor of, a Competing Brand, irrespective of the number of hotels owned, licensed or franchised by the Competitor under such Competing Brand. A Competitor does not include an individual or entity that: (i) is a franchisee of a Competing Brand; (ii) manages a Competing Brand hotel, so long as the individual or entity is not the exclusive manager of the Competing Brand;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the definition of "Competitor" has some specific exclusions. The definition includes any individual or entity that owns, licenses, or franchises a competing brand. However, it specifically excludes 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.
This means that simply managing a competing hotel brand does not automatically classify someone as a "Competitor" of Embassy Suites, unless they are the exclusive manager. This distinction is important because it allows for some level of involvement in competing brands without triggering competitive restrictions outlined in the franchise agreement.
For a prospective Embassy Suites franchisee, this definition clarifies the boundaries of permissible activities. They can't own or franchise a competing brand, but they might be able to manage one, provided they aren't the exclusive manager. This clause aims to prevent conflicts of interest and protect the Embassy Suites brand, while still allowing for some flexibility in business dealings.