If Embassy Suites grants a Restricted Area, will the boundaries be the same for every Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The boundaries of the Restricted Area will normally depend on the relevant market in the immediate area and competitive circumstances in the relevant market at the time you sign the Franchise Agreement.
The boundaries will vary in size and shape from hotel to hotel.
Boundaries will not be delineated according to any standard formula, but may be delineated in various ways, including references to cities, metropolitan areas, counties or other political subdivisions, references to streets or highways, or references to an area encompassed within a radius of specified distance from the front door of the hotel.
Source: Item 12 — TERRITORY (FDD pages 67–70)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the boundaries of a Restricted Area, if granted, will vary from hotel to hotel. The FDD states that these boundaries depend on the immediate market and competitive circumstances at the time the Franchise Agreement is signed. This means that the size and shape of the Restricted Area will be unique to each Embassy Suites location.
The document specifies that there isn't a standard formula for determining these boundaries. Instead, they can be delineated in various ways, such as by referencing cities, metropolitan areas, counties, streets, highways, or a specified radius from the hotel's front door. This flexible approach allows Embassy Suites to tailor the Restricted Area to the specific competitive landscape of each location.
For a prospective franchisee, this means that the extent of territorial protection offered by a Restricted Area Provision will be highly dependent on the specific location and market conditions of their Embassy Suites hotel. Franchisees should carefully evaluate the proposed Restricted Area and understand how it will protect their business from competition, keeping in mind that the boundaries are not uniform across all Embassy Suites franchises.