Is an Embassy Suites franchisee allowed to communicate with other parties regarding an infringement or challenge to the use of the Marks?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to control any administrative proceedings or litigation involving a Mark licensed by us to you. We will have the sole right and responsibility to handle disputes with third parties concerning use of the Marks or the System. The protection of the Marks and their distinguishing characteristics as standing for the System is important to all of us. For this reason, you must immediately notify us of any infringement of or challenge to your use of any of the Marks. You may not communicate with any other person regarding any such infringement, challenge or claim. We will take the action we consider appropriate with respect to such challenges and claims and only we will have the right to handle disputes concerning the Marks or the System. You must fully cooperate with us in these matters. Under the terms of the Franchise Agreement, you appoint us as your exclusive attorney-in-fact, to defend and/or settle all disputes of this type. You must sign any documents we believe are necessary to obtain protection for the Marks and the System and assign to us any claims you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final. All recoveries made as a result of disputes with third parties regarding the System or the Marks will be for our account.
Source: Item 13 — TRADEMARKS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are explicitly prohibited from communicating with other parties regarding any infringement or challenge to the use of the brand's trademarks. The FDD emphasizes that Embassy Suites retains sole authority over handling disputes related to the Marks or the System.
Specifically, the franchisee must immediately notify Embassy Suites of any infringement or challenge to the use of the Marks. However, the franchisee is barred from discussing the matter with any other person. Embassy Suites will then take whatever action it deems appropriate to address the situation.
This policy is in place to ensure consistent brand protection and legal strategy. The Franchise Agreement appoints Embassy Suites as the exclusive attorney-in-fact to manage and settle these disputes. Franchisees are obligated to cooperate fully with Embassy Suites in these matters and must sign any documents necessary to protect the Marks and the System. Any financial recoveries resulting from these disputes will be for the benefit of Embassy Suites, not the franchisee. This arrangement is typical in franchising, where the franchisor must maintain uniform brand standards and legal control.