Can an Embassy Suites franchisee operate another spa in, adjacent to, or associated with the Hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything set forth in the Franchise Agreement to the contrary, you understand and acknowledge that: (i) you may not lease or sublease commercial space in your eforea spa, or enter into concession arrangements for operations in connection with your eforea spa; (ii) neither you nor any affiliate may operate, have operated on your behalf or on behalf of an affiliate, or allow the operation of, another spa in, adjacent to or that is associated in any way with, the Hotel; (iii) you may not enter into a Change of Ownership Transfer for your Hotel unless you are also transferring your eforea spa in the same transaction and you may not enter into a Change of Ownership Transfer for your eforea spa unless you are also transferring your Hotel in the same transaction; and (iv) any Restricted Area granted by Franchisor shall not apply to Franchisee with respect to its eforea spa.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee operates an eforea spa in conjunction with their hotel, they are restricted from operating another spa in, adjacent to, or associated with the hotel. This restriction applies not only to the franchisee but also to any of their affiliates.
Specifically, the franchisee nor any affiliate is allowed to operate, have operated on their behalf or on behalf of an affiliate, or allow the operation of, another spa in, adjacent to or that is associated in any way with, the Hotel. This is a condition outlined in the eforea Spa Amendment to the Franchise Agreement.
This restriction is significant because it prevents franchisees from diversifying their spa operations within or near the Embassy Suites hotel location. It ensures that the eforea spa remains the exclusive spa offering at the hotel, preventing direct competition from the franchisee or related entities. This clause aims to protect the brand integrity and the investment made in the eforea spa concept within the Embassy Suites establishment.