factual

For the Embassy Suites franchise, what are franchisees prohibited from doing regarding trademark or service mark registration of the Marks or confusingly similar marks?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

9.1.3 You agree not to directly or indirectly dilute the value of the goodwill attached to the Marks, the Brand or the System. You will not apply for or obtain any trademark or service mark registration of any of the Marks or any confusingly similar marks in your name or on behalf of or for the benefit of anyone else. You acknowledge that you are not entitled to receive any payment or other value from us or from any of our Affiliates for any goodwill associated with your use of the System or the Marks, or any elements or components of the System.

Source: Item 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are explicitly prohibited from registering trademarks or service marks related to the Embassy Suites brand. Specifically, franchisees cannot apply for or obtain any trademark or service mark registration of any of the Marks or any confusingly similar marks in their name or on behalf of anyone else. This restriction is in place to protect the goodwill and integrity of the Embassy Suites brand and its associated marks.

This means that a franchisee cannot attempt to register any variations or similar marks that could be associated with the Embassy Suites brand. The franchisee acknowledges that they are not entitled to receive any payment or other value from Embassy Suites or its affiliates for any goodwill associated with their use of the System or the Marks. This ensures that the franchisor maintains exclusive control over its brand identity and prevents franchisees from potentially creating confusion in the marketplace or claiming ownership over brand-related assets.

This is a standard practice in franchising, as franchisors need to maintain consistent branding across all franchise locations. By preventing individual franchisees from registering trademarks, Embassy Suites ensures uniformity and protects its brand equity. Franchisees must rely on the licensed use of the Marks granted by the franchise agreement and cannot independently seek to establish trademark rights related to the brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.