For Embassy Suites franchises in Maryland, what aspects of the Franchise Agreement may be superseded by Maryland law according to the addendum to the Disclosure Document?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Addendum to Disclosure Document Pursuant to the Maryland Franchise Registration and Disclosure Law
The following provisions will supersede anything to the contrary in the Franchise Disclosure Document and will apply to all franchises offered and sold under the laws of the State of Maryland:
- Items 17 (b), (c), (d), (e), (f), (g), (h) and (i) are amended to state that the laws of the State of Maryland may supersede the Franchise Agreement, in the areas of termination and renewal of the Franchise.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the addendum to the disclosure document pursuant to Maryland Franchise Registration and Disclosure Law states that the laws of Maryland may supersede the Franchise Agreement in the areas of termination and renewal of the franchise. Specifically, Items 17 (b), (c), (d), (e), (f), (g), (h) and (i) of the Franchise Agreement are amended to reflect this. This means that certain provisions related to how the franchise can be terminated or renewed might be subject to Maryland state law, regardless of what the franchise agreement initially states.
For a prospective Embassy Suites franchisee in Maryland, this addendum provides an added layer of protection. It ensures that Maryland's franchise laws take precedence over conflicting terms in the franchise agreement regarding termination and renewal. This could be beneficial if Maryland law offers more favorable terms or greater protection to the franchisee than the standard agreement.
It is important for potential franchisees to carefully review both the franchise agreement and the Maryland addendum with legal counsel to fully understand their rights and obligations. This will help ensure they are aware of which provisions of the agreement are subject to Maryland law and how that might impact their franchise relationship with Embassy Suites.