Is an Embassy Suites franchisee allowed to use the Embassy Suites System, Brand, and Marks in Other Businesses?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
, business names, copyrights, service marks, trademarks or trade names (whether registered or unregistered) developed or owned by you or your Affiliates, or licensed to you or your Affiliates by a third party other than us or our Affiliates, that are used as part of the Trade Name. [OR OPTIONAL INSERT FOR OL, QQ, UP TO IDENTIFY SPECIFIC OWNER MARK: Your Marks includes [____________].]
2.0 GRANT OF LICENSE
2.1 Non-Exclusive License. We grant to you and you accept a limited, non-exclusive License to use the Marks and the System during the Term at, and in connection with, the operation of the Hotel in accordance with the terms of this Agreement. [INSERT ONLY FOR CV DEALS: Provided, however, that 1) your right to operate the Hotel under the Brand will not become effective until after any existing thirdparty franchise, management or similar agreement for the Hotel has terminated or expired; and 2) you are solely responsible for ensuring that any existing third-party franchise, management or similar agreement has terminated or expired on or before the Opening Date.]
2.2 Reserved Rights.
2.2.1 This Agreement does not limit our right, or the right of our Affiliates, to own, license or operate any Other Business of any nature, whether in the lodging or hospitality industry or not, and whether under the Brand, a Competing Brand, or otherwise. We and our Affiliates have the right to engage in any Other Businesses, even if they compete with the Hotel, the System, or the Brand, and whether we or our Affiliates start those businesses, or purchase, merge with, acquire, are acquired by, come under common ownership with, or associate with, such Other Businesses.
2.2.2 We may also:
- 2.2.2.1 add, alter, delete or otherwise modify elements of the System;
- 2.2.2.2 use or license to others all or part of the System;
- 2.2.2.3 use the facilities, programs, services and/or personnel used in connection with the System in Other Businesses; and
- 2.2.2.4 use the System, the Brand and the Marks in the Other Businesses.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are granted a limited, non-exclusive license to use the brand's marks and system solely for the operation of the franchised hotel. This license is specifically tied to the location and operation of the Embassy Suites hotel under the terms of the franchise agreement.
The agreement explicitly reserves the rights of the franchisor and its affiliates to engage in any other business, regardless of whether it competes with the franchisee's hotel. This includes businesses within or outside the lodging and hospitality industry, operating under the Embassy Suites brand, a competing brand, or any other brand. The franchisor's right to engage in other businesses extends to starting new ventures, acquisitions, mergers, or associations with other businesses, even if they directly compete with the franchisee.
Furthermore, franchisees are prohibited from diluting the goodwill associated with the Embassy Suites marks, brand, or system. They cannot register any trademarks or service marks that are confusingly similar to the brand's marks. Upon termination or expiration of the franchise agreement, franchisees must cease using the marks, trade name, and any similar identifying elements, and must return all materials bearing the marks to the franchisor. These stipulations ensure that the franchisee's rights to the Embassy Suites system, brand, and marks are strictly limited to the operation of the franchised hotel and do not extend to other business ventures.