Does the Embassy Suites franchise agreement require the franchisee to warrant the truthfulness of statements made in the franchise application?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.11 Representations and Warranties. You warrant, represent and agree that all statements in your franchise application in anticipation of the execution of this Agreement, and all other documents and information submitted to us by you or on your behalf are true, correct and complete as of the date of this Agreement.
You further represent and warrant to us that:
16.11.1 you have independently investigated the risks of operating the Hotel under the Brand, including current and potential market conditions and competitive factors and risks, and have made an independent evaluation of all such matters and reviewed our franchise disclosure document, if applicable;
16.11.2 neither we nor our representatives have made any promises, representations or agreements other than those provided in the Agreement or in our franchise disclosure document provided to you in connection with the offer of this Agreement, if applicable, and you acknowledge that you are not relying on any promises, representations or agreements about us or the franchise not expressly contained in this Agreement in making your decision to sign this Agreement;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the franchise agreement stipulates that franchisees must warrant the truthfulness of all statements made in their franchise application. Specifically, the agreement states that all information submitted by the franchisee or on their behalf must be true, correct, and complete as of the date of the agreement. This requirement ensures that Embassy Suites relies on accurate information when entering into a franchise relationship.
This representation and warranty extend to various aspects of the franchisee's situation. It covers the franchisee's independent investigation of the risks associated with operating an Embassy Suites hotel, including market conditions and competitive factors. It also confirms that the franchisee is not relying on any promises or representations outside of the franchise agreement and the franchise disclosure document. Furthermore, the franchisee warrants that they have the legal authority to enter into the agreement and that doing so does not violate any other agreements or laws.
For franchisees in Maryland, Minnesota, and New York, there are specific addenda that modify this requirement. The Maryland, Minnesota, and New York addenda to the franchise agreement remove subsections 16.11.1 and 16.11.2, which likely relate to the franchisee's independent investigation and reliance on representations outside the agreement. However, the core requirement to warrant the truthfulness of the information provided in the franchise application remains, unless otherwise superseded by state-specific franchise laws.
This warranty is a standard practice in franchising, as it protects Embassy Suites from misrepresentations made by potential franchisees. However, franchisees should carefully review all information provided in their application to ensure its accuracy. Failure to provide truthful information could result in a breach of the franchise agreement, leading to potential legal and financial consequences.