For Embassy Suites franchisees, where can the meaning of capitalized terms not defined in the TSP Agreement be found?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This letter agreement sets forth the entire agreement of the parties to this letter agreement in regard to the matters addressed in this letter agreement.
Capitalized terms not otherwise defined in this letter agreement shall have the meanings assigned to the term in the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, specifically within the Mezzanine Lender Comfort Letter, capitalized terms that are not defined within that letter have the meanings assigned to them in the Franchise Agreement. This means that if a franchisee encounters a capitalized term in the Mezzanine Lender Comfort Letter that is unclear, they should refer to the Franchise Agreement for clarification.
This is a common practice in legal documents to avoid redundancy and ensure consistency in terminology. The Mezzanine Lender Comfort Letter is designed to work in conjunction with the Franchise Agreement, and referencing the Franchise Agreement for definitions ensures that all parties (Franchisee, Franchisor, and Lender) are operating under the same understanding of key terms.
For a prospective Embassy Suites franchisee, this highlights the importance of thoroughly reviewing and understanding the Franchise Agreement, as it serves as the foundation for interpreting related documents like the Mezzanine Lender Comfort Letter. Franchisees should pay close attention to the definitions provided in the Franchise Agreement to avoid any potential misunderstandings or disputes later on.