What happens to the agreement between HSS and the Embassy Suites customer upon termination or expiration of the Relationship Agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will automatically terminate upon the termination or expiration of the Relationship Agreement.
4.2 4.2 Customer's Obligations upon Termination or Expiration. Upon any such termination the licenses granted to Customer under this Agreement, and the obligations of HSS to provide any Agreement Products and Services will immediately terminate. Customer will immediately cease using all Agreement Products and Services and promptly at HSS's discretion return any and all Agreement Products to HSS other than Authorized Equipment Customer owns, or destroy the same; provided, however, that Customer must return to HSS all Software contained in such Authorized Equipment. All of Customer's covenants and obligations under this Agreement will survive termination and expiration.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the agreement between HSS (presumably a service provider) and the customer automatically terminates upon the termination or expiration of the Relationship Agreement. Following termination, the licenses granted to the customer to use the Agreement Products and Services are immediately revoked, and HSS is no longer obligated to provide these products and services. The customer must immediately stop using all Agreement Products and Services.
At HSS's discretion, the customer is required to either return any Agreement Products (excluding Authorized Equipment the customer owns) to HSS or destroy them. However, all software contained within the Authorized Equipment must be returned to HSS. It is important to note that all obligations and agreements made by the customer within the original agreement will remain in effect even after termination or expiration.
This means that if an Embassy Suites franchisee's relationship agreement ends, their access to and use of HSS's products and services tied to that agreement also ends. They must discontinue use and return or destroy the products as directed, while still being bound by the original agreement's terms. This could involve significant disruption and potential costs for the franchisee, especially if they need to find alternative service providers quickly.