Must an Embassy Suites franchisee provide evidence of compliance with laws upon request?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
In connection with this Agreement or the performance of its obligations under this Agreement, you will not use any portion of the development incentive to make, provide, offer to make, or authorize, directly or indirectly, an Improper Payment or engage in any acts or transactions otherwise violating any Anti-Corruption Laws. If we have any basis for a reasonable belief that you have used the development incentive in violation of any Anti-Corruption Laws, we will advise you of this belief and you will cooperate with any and all reasonable information and document requests and inquiries, including requests for execution of certificates of compliance, and 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, franchisees are required to cooperate with reasonable requests for information and documentation to demonstrate compliance with certain legal and contractual obligations. Specifically, this relates to compliance with anti-corruption laws. If Embassy Suites believes a franchisee may not be in compliance with these laws, they will notify the franchisee of their belief.
Upon notification, the franchisee must cooperate with all reasonable information and documentation requests and inquiries, including requests for execution of certificates of compliance. This means the franchisee must provide evidence and attest to their adherence to anti-corruption laws if requested by Embassy Suites.
Furthermore, the franchisee must permit Embassy Suites, with reasonable prior notice and at all reasonable times, to inspect the books and records pertaining to the development, ownership, management, and use of the hotel. This allows Embassy Suites to independently verify the franchisee's compliance with the relevant laws and the franchise agreement. This obligation extends to situations where Embassy Suites has a reasonable belief that development incentives were used in violation of anti-corruption laws.