Who discharges the obligations to Embassy Suites franchisees in the US on behalf of the franchisor?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hilton will – at all times acting on our behalf – discharge all of our duties and obligations under Brand franchise agreements governing hotels situated in the US, including: discharging all of our obligations to franchisees; managing the Brand and the System; marketing, offering and negotiating new franchise agreements (including New Development, Relicensing, and Change of Ownership franchise agreements) as our franchise broker; furnishing assistance to Band franchisees in the US; implementing our quality assurance programs; and, otherwise on our behalf, discharging all duties we owe under franchise agreements governing Brand hotels in the US.
Hilton or its affiliates employ all the persons who will provide services to you on our behalf under the terms of your Franchise Agreement. If Hilton fails to perform its obligations, then Hilton may be replaced as the franchise service provider. However, we, as the Franchisor will always be responsible for fulfilling all our duties and obligations under your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Hilton will act on behalf of the franchisor to discharge all duties and obligations under brand franchise agreements governing hotels situated in the US. This includes fulfilling obligations to franchisees, managing the brand and system, marketing, offering, and negotiating new franchise agreements, furnishing assistance to franchisees in the US, implementing quality assurance programs, and generally fulfilling duties under franchise agreements for Embassy Suites hotels in the US.
Specifically, Hilton or its affiliates employ all personnel who provide services to franchisees on behalf of Embassy Suites under the terms of the Franchise Agreement. However, the FDD clarifies that even though Hilton is responsible for providing these services, Embassy Suites, as the franchisor, remains ultimately responsible for fulfilling all duties and obligations under the Franchise Agreement.
This arrangement means that while franchisees will interact with Hilton for day-to-day support and operational matters, Embassy Suites retains the overall legal and financial responsibility for ensuring that all obligations to the franchisee are met. If Hilton fails to perform its obligations, it may be replaced as the franchise service provider, but Embassy Suites's responsibility to the franchisee remains.