For an Embassy Suites franchise, what should a franchisee do if any of the representations and warranties regarding compliance with laws become incorrect?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
16.13.2 You will notify us in writing immediately on the occurrence of any event which would render the foregoing representations and warranties of this Subsection 16.13 incorrect.
16.13.3 If we believe that you may not be in compliance with any of the covenants, representations and warranties set forth in this Subsection 16.13, we will advise you of our belief, and you must (a) cooperate with any and all reasonable information and documentation requests and inquiries, including requests for execution of certificates of compliance, and (b) permit, on reasonable prior notice, at all reasonable times, inspection of the books and records pertaining to the development, ownership, management, and use of the Hotel.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, a franchisee must provide written notification to Embassy Suites immediately if any event occurs that would render the representations and warranties regarding compliance with anti-corruption laws incorrect.
Specifically, this requirement pertains to representations and warranties made by the franchisee, or any person having control over the franchisee or the hotel, concerning adherence to applicable Anti-Corruption Laws. These include assurances that no Improper Payments have been made, and that no Government Entity or Government Official is improperly using their position to influence actions or secure improper advantages for the benefit of the hotel or Embassy Suites. The franchisee must also ensure that their appointed agents, such as a Management Company, comply with these representations, warranties, and covenants.
If Embassy Suites believes that a franchisee may not be in compliance with these covenants, representations, and warranties, Embassy Suites will advise the franchisee of their belief. The franchisee must then cooperate with all reasonable information and documentation requests and inquiries, including requests for execution of certificates of compliance. Additionally, the franchisee must permit, on reasonable prior notice and at all reasonable times, inspection of the books and records pertaining to the development, ownership, management, and use of the Hotel.