Does the Embassy Suites Franchise Disclosure Document contain all agreements related to renewal, termination, transfer, and dispute resolution?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This table lists certain important provisions of the Franchise Agreement and related agreements pertaining to renewal, termination, transfer, and dispute resolution. You should read these provisions in the agreements attached to this Disclosure Document.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Item 17 provides a table that lists important provisions of the Franchise Agreement and related agreements, specifically addressing renewal, termination, transfer, and dispute resolution. The document explicitly states that prospective franchisees should carefully review these provisions within the agreements attached to the Disclosure Document. This indicates that the FDD includes summaries of key aspects of these agreements.
The table outlines various provisions related to these topics, such as the length of the franchise term, conditions for renewal, grounds for termination, and the process for transferring ownership. For instance, the franchise term for new construction is generally 23 years after the effective date, while for conversions, it ranges from 10 to 20 years after the opening date. The FDD also defines what constitutes a transfer by the franchisee and specifies the conditions under which Embassy Suites' approval is required for such transfers.
Regarding dispute resolution, the FDD specifies that New York law applies, without recourse to New York choice of law on conflicts of law principles, except to the extent governed by the United States Trademark Act of 1946. The venue for dispute resolution is Fairfax County, Virginia, or New York, New York, although Embassy Suites may elect to bring an action against the franchisee where the hotel is located. For Puerto Rico arbitration actions, the venue will be Fairfax County, Virginia, and the seat of the arbitration will be New York, New York.
It is important to note that the table provides summaries, and the actual terms and conditions are detailed in the Franchise Agreement, Spa Amendment, and HITS Agreement, which are attached to the FDD. Therefore, while the FDD contains information about these critical aspects of the franchise relationship, franchisees must refer to the full agreements for complete details.