factual

If an Embassy Suites franchisee in Minnesota engages in non-compliance, can Embassy Suites seek injunctive relief?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. In compliance with Minnesota Rule 2860.4400J, Subsection 9.6.2 of the Franchise Agreement is amended as follows:

The first sentence is amended to read: "If you engage in such non-compliance or unauthorized and/or improper use of the System or the Marks during or after the Term, we and any of our applicable Affiliates, along with the successors and assigns of each, will be entitled to seek both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies we and our Affiliates may have at law." The second sentence is deleted in its entirety.

Source: Item 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to the 2025 Embassy Suites Franchise Disclosure Document, if a franchisee in Minnesota engages in non-compliance or unauthorized use of the Embassy Suites system or marks, Embassy Suites is entitled to seek both temporary and permanent injunctive relief against the franchisee from any court of competent jurisdiction. This is in addition to all other remedies that Embassy Suites and its affiliates may have at law.

This amendment to Subsection 9.6.2 of the Franchise Agreement, as detailed in the Minnesota Addendum, explicitly grants Embassy Suites the right to pursue injunctive relief in cases of franchisee non-compliance. Injunctive relief is a court order that requires the franchisee to cease the non-compliant behavior. This can be a powerful tool for Embassy Suites to protect its brand standards and intellectual property.

For a prospective Embassy Suites franchisee in Minnesota, this means that any deviation from the franchise agreement or unauthorized use of the system or trademarks could result in legal action, including an injunction. The franchisee should be aware of the specific compliance requirements outlined in the franchise agreement and adhere to them to avoid potential legal issues. This also means that the franchisee consents to the seeking of such an injunction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.