Does the Embassy Suites franchise agreement create a partnership, joint venture, agency, fiduciary, employment, or joint-employment relationship between the franchisor and franchisee?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
15.1 No Agency Relationship. You are an independent contractor. Neither Party is the legal representative or agent of the other Party. Neither Party has the power to obligate the other Party for any purpose. You acknowledge that: (a) we do not direct, supervise, manage, dictate, or control (or have, retain, or exercise any right to control), labor or employment matters for you or your employees; (b) we do not set (or have, retain, or exercise any right to set) any terms or conditions of employment for your employees; (c) the training we require is for the purpose of enabling you to ensure that your Hotel operates in compliance with our Standards; and (d) you have exclusive control over your daily affairs. You expressly acknowledge that the Parties have a business relationship based entirely on, and defined by, the express provisions of this Agreement and that no partnership, joint venture, agency, fiduciary, employment, or jointemployment relationship is intended or created by reason of this Agreement.
By entering into this Agreement, we make no representations regarding, and do not intend to obtain, retain, or reserve control over, the essential terms and conditions of employment of you or your employees, or your Management Company or their employees (if applicable). Franchisees are independent contractors and independent employers and we do not and will not have, retain, or exercise any authority over your employment-related policies or procedures. You are solely responsible for overseeing any and all employment-related policies and procedures for your employees in the operation of your Hotel business.
15.2 Notices Concerning Your Independent Status. All contracts for the Hotel's operations and services at the Hotel will be in your name or in the name of your Management Company. You will not enter into or sign any contracts in our name or any of our Affiliates' names or use the Marks or any acronyms or variations of the Marks. You will disclose in all dealings with the public and your employees, agents, contractors, suppliers and other third parties that: (a) you are the Hotel's owner; (b) you are an independent entity; (c) you are the employer, principal, or contracting party (as applicable); and (d) we are not responsible for your liabilities or debts in any manner whatsoever.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that no partnership, joint venture, agency, fiduciary, employment, or joint-employment relationship is intended or created by the agreement. Embassy Suites franchisees operate as independent contractors.
This means that as an Embassy Suites franchisee, you are responsible for all labor and employment matters for your employees, and Embassy Suites does not have the right to control these aspects of your business. The training that Embassy Suites requires is solely to ensure that the hotel operates in compliance with their standards. Franchisees have exclusive control over their daily business affairs.
Furthermore, franchisees must disclose in all dealings with the public, employees, and other third parties that they are the hotel's owner, an independent entity, and the employer or contracting party, as applicable. It must also be disclosed that Embassy Suites is not responsible for the franchisee's liabilities or debts. All contracts for the hotel's operations and services must be in the franchisee's name or the name of their management company, and franchisees are prohibited from entering into contracts in Embassy Suites's name.