What is the effect of the eforea Spa Amendment on the definition of 'Brand' for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
"Brand" means with respect to the Hotel, the brand name set forth in the Addendum, and the brand name "eforea" with respect to the spa to be operated hereunder.
"Term" means the period from the Effective Date through the expiration of this Agreement on the date set forth in the Addendum, unless terminated earlier under the terms of this Agreement. The Term for the operation of your eforea spa shall expire on the earlier of: (i) the termination of the eforea spa Amendment to this Agreement or (ii) the expiration or termination of this Agreement.
"Opening Date" means the day on which we authorize you to make available the facilities, guestrooms or services of the Hotel to the general public under the Brand. However, the "Opening Date" as it relates to the eforea spa, shall mean the day on which we authorize you to make available the spa's services to the general public.
"Trade Name" means the name of the Hotel set forth in the Addendum, and with respect to the operation of the spa in connection with the Hotel, the name "eforea."
- (b) The definition of "Manual" is amended to include the eforea Spa Operating Standards Manual.
- (c) The definition of "Standards" is amended to include application to eforea spas licensed by us.
- (d) The definition of "System" is amended to include the elements that we designate to distinguish spas operating under the "eforea" name, including know-how.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the eforea Spa Amendment modifies the definition of "Brand" to include the brand name "eforea" specifically for the spa operated under the franchise agreement. This means that while the hotel itself operates under the brand name set forth in the Addendum to the Franchise Agreement, the spa within the hotel operates under the "eforea" brand name.
This distinction is important because it grants the franchisee a limited, non-exclusive license to operate a spa using the eforea name and associated branding. The franchisee must adhere to all standards developed by Embassy Suites for eforea spas, covering aspects like design, construction, operation, marketing, and service quality. This ensures consistency and quality across all eforea spas within the Embassy Suites system.
The amendment also affects the "Trade Name," defining it as the name of the Hotel set forth in the Addendum, and "eforea" with respect to the operation of the spa in connection with the Hotel. Furthermore, the definitions of "Manual", "Standards", and "System" are amended to include the eforea Spa Operating Standards Manual, application to eforea spas, and the elements that distinguish spas operating under the "eforea" name, respectively. These changes clarify that the eforea spa is an integrated, branded component of the Embassy Suites hotel, subject to specific operational and branding guidelines.
In practical terms, this means that an Embassy Suites franchisee who chooses to operate an eforea spa must follow the additional standards and guidelines set forth in the eforea Spa Operating Standards Manual. They must also pay an initial fee of $25,000 and a spa royalty fee equal to two percent (2%) of Gross Spa Revenue. The franchisee also needs to ensure that the Opening Date for the eforea spa is within twelve (12) months of the Effective Date of the eforea Amendment.