What is the Embassy Suites franchisee's obligation regarding cooperation with the franchisor and its affiliates in matters of trademark disputes?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- The first sentence of Subsection 16.2.1 of the Franchise Agreement is amended to read as follows:
"The Parties agree that, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended, this Agreement will be governed by the laws of the State of New York without recourse to New York choice of law or conflicts of law principles, provided, however, that this Section shall not in any way abrogate or reduce any rights of Franchisee as provided for in Minnesota Statutes 1984, Chapter 80C, including the right to submit matters to the jurisdiction of the courts of Minnesota."
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
The 2025 Embassy Suites Franchise Disclosure Document (FDD) states that the Franchise Agreement is governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended. This means that disputes related to trademarks will be handled under federal law.
Specifically, the FDD notes an amendment to Subsection 16.2.1 of the Franchise Agreement, clarifying that the agreement is governed by the laws of the State of New York, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended.
This clause ensures that the rights and responsibilities of both Embassy Suites and the franchisee concerning trademark usage, protection, and potential disputes are subject to federal trademark law. Franchisees should be aware of the implications of the Lanham Act and how it affects their use of the Embassy Suites brand and trademarks.