What happens to an Embassy Suites franchisee on termination or expiration of the Franchise Agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| i. Your | | obligations on FA §13.6 | | | must immediately: | | HITS Agreement | | You have no right to cure once your Franchise Agreement terminates. | | | On termination or expiration of the Franchise Agreement you
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must immediately fulfill certain obligations. These obligations are detailed in Section 13.6 of the Franchise Agreement.
Specifically, the franchisee is required to adhere to the stipulations outlined in the agreement concerning actions to be taken following the end of the franchise term. This includes discontinuing the use of Embassy Suites's branding, operational systems, and intellectual property.
Additionally, if the franchisee has a HITS Agreement, they have no right to cure any issues once the Franchise Agreement terminates. This means that any outstanding problems or breaches cannot be resolved after the termination date, further emphasizing the importance of adhering to all terms and conditions during the franchise term.