What is the geographic scope of the license granted in the eforea Spa Amendment for an Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchise Agreement permits you to operate the Hotel as a [INSERT] Brand hotel (“Hotel”); you have applied to operate an eforea spa (“eforea spa”) in connection with the operation of the Hotel; we are willing to accept such application and grant a license to you to use the Brand in the operation of an eforea spa at the Hotel Site pursuant to the Franchise Agreement as amended by this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are acknowledged, we and you agree as follows:
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- Grant of Non-Exclusive License. We and you acknowledge that in executing this Amendment, and modifying certain of the defined terms in the Franchise Agreement during the term of this Amendment, we are granting to you and you are accepting a limited, non-exclusive license to operate a spa on the Hotel Site using the eforea name and other indicia of an eforea spa during the Term applicable to the eforea spa, and you are agreeing to comply with all Standards that have been and are in the future developed by us for use in connection with the design, construction, renovation, refurbishment, appearance, equipment, furnishing, supplying, opening, operating, maintaining, marketing, services, service levels, quality, and quality assurance of eforea spas.
The spa operated at the Hotel Site as a part of the Hotel will be known by the Trade Name "eforea," unless otherwise approved, or changed by us.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the eforea Spa Amendment grants a limited, non-exclusive license to operate a spa on the Hotel Site. The "Hotel" is defined as the property operated under the Franchise Agreement, including all structures, facilities, and areas approved by Embassy Suites, such as the eforea spa. This indicates that the license to operate the eforea spa is specifically tied to the approved Hotel Site. The trade name "eforea" will be used for the spa operated at the Hotel Site, unless otherwise approved or changed by Embassy Suites.
This means that the franchisee's right to operate the eforea spa is restricted to the physical location of the Embassy Suites hotel as approved by the franchisor. The franchisee cannot move the spa to another location or operate it independently of the hotel without violating the terms of the agreement. The amendment also specifies that the franchisee may not lease or sublease commercial space in the eforea spa or operate another spa in, adjacent to, or associated with the Hotel.
The agreement emphasizes that the eforea spa must be transferred along with the hotel in any Change of Ownership Transfer, ensuring that the spa's operation remains connected to the Embassy Suites hotel. Furthermore, any Restricted Area granted by Embassy Suites does not apply to the franchisee regarding its eforea spa, indicating that the franchisee's ability to operate the spa is not protected from competition in the same way as the hotel might be.
Upon termination or expiration of the franchisee's right to operate the spa, the franchisee must cease using the eforea name and related marks, deliver all goods and materials containing the marks to Embassy Suites, make any required changes to de-identify the spa, cease representing the hotel as operating an eforea spa, return the eforea Spa Operations Standards Manual, and cancel any registrations relating to the use of the eforea name. These obligations highlight the limited and site-specific nature of the license granted under the eforea Spa Amendment.