Who determines if a hotel brand is a 'Competing Brand' to Embassy Suites?

According to Embassy Suites's 2025 Franchise Disclosure Document, the determination of what constitutes a 'Competing Brand' is made by Embassy Suites. Specifically, the FDD states that a 'Competing Brand' is defined as a hotel brand or trade name that, in Embassy Suites's sole business judgment, competes with the Embassy Suites system, any Embassy Suites hotel, or any Network Hotel.

This definition gives Embassy Suites significant discretion in determining which brands are considered competitive. This determination is important because it can impact a franchisee's ability to invest in or be involved with other hotel brands.

For a prospective Embassy Suites franchisee, this means that they need to be aware of the broad definition of 'Competing Brand' and how Embassy Suites might interpret it. It would be prudent to discuss with Embassy Suites specific examples of hotel brands that they would consider competitive to avoid any potential conflicts of interest or restrictions on other business ventures. Understanding this definition is crucial for franchisees to make informed decisions about their investments and business activities during the term of their franchise agreement.