Does the Embassy Suites Franchise Agreement give me any rights to the System?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
asis.
If you will operate an eforea spa, you must open the spa by the date we specify, which will generally be within 12 months after the date you sign the Spa Amendment.
ITEM 12 TERRITORY
We grant franchisees a non-exclusive license to use the System during the term of the Franchise Agreement to operate a franchised hotel at a specified location. There are no provisions in the standard Franchise Agreement granting franchisees a protected area or territory. You will not receive an exclusive territory. You may face competition from other franchisees, from hotels that our affiliates own, or from other channels of distribution or competitive brands that we control. The standard Franchise Agreement permits us to own, operate, manage, franchise, license, lease, or affiliate or associate with any Other Business of any nature, whether in the lodging or hospitality industry or not, and whether under the Brand, a competitive brand, or otherwise, at any time and in any location. We and our affiliates have the right to engage in any Other Businesses, even if they compete with your Hotel, the Brand, System Hotels, or Network Hotels, and whether we or our affiliates start those businesses, or purchase, merge with, acquire, are acquired by, come under common ownership with, affiliate or associate with, such Other Businesses.
We may also: (a) modify the System by adding, altering, or deleting elements of the System; (b) use or license to others all or part of the System; (c) use the facilities, programs, services and/or personnel used in connection with the System in Other Businesses; and (d) use the System, the Brand, and the Marks in the Other Businesses. You acknowledge and agree that you have no
rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of the foregoing activities, and you acknowledge and agree that such activities will not give rise to any liability on our part, including, but not limited to, liability for claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.
Source: Item 12 — TERRITORY (FDD pages 67–70)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are granted a non-exclusive license to use the Embassy Suites System during the term of the Franchise Agreement to operate a franchised hotel at a specified location. However, the standard Franchise Agreement does not grant franchisees a protected area or territory. This means that as a franchisee, you will not receive an exclusive territory and may face competition from other franchisees, hotels owned by Embassy Suites' affiliates, or other channels of distribution or competitive brands controlled by them.
The Embassy Suites Franchise Agreement permits Embassy Suites to own, operate, manage, franchise, license, lease, or affiliate with any other business, whether in the lodging or hospitality industry or not, and whether under the Embassy Suites brand, a competitive brand, or otherwise, at any time and in any location. Embassy Suites and its affiliates have the right to engage in any other businesses, even if they compete with your hotel, the Embassy Suites brand, System Hotels, or Network Hotels. This includes starting those businesses, or purchasing, merging with, acquiring, being acquired by, coming under common ownership with, affiliating or associating with such other businesses.
Embassy Suites may also modify the System by adding, altering, or deleting elements, use or license all or part of the System to others, use the facilities, programs, services, and/or personnel used in connection with the System in other businesses, and use the System, the Embassy Suites brand, and the Marks in other businesses. As a franchisee, you acknowledge and agree that you have no rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of these activities. You also agree that such activities will not give rise to any liability on Embassy Suites' part, including claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair dealing, or divided loyalty.
In some instances, Embassy Suites may agree to give franchisees specific territorial restrictions for an area surrounding the franchised hotel, known as a "Restricted Area Provision." This provision, if granted, is typically for an agreed-on time period shorter than the term of the Franchise Agreement. However, these protections have exclusions, such as previously existing hotels managed or licensed by Embassy Suites or its affiliates, or any hotel site for which they have approved an application. Furthermore, these restrictions may lapse if the Embassy Suites brand is no longer affiliated with Hilton Worldwide. As a franchisee, you may compete with any Network Hotels in and near your area, and there is no mechanism for resolving any conflicts that may arise between your hotel and Network Hotels.