If Embassy Suites' service is suspended, is Embassy Suites entitled to any compensation, refund, or reduction in charges?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If Customer fails to comply with the Information System use regulations, rules or policies, or is otherwise in default under this Agreement HSS may, in its sole discretion: (a) disable Customer's access to or use of all or any part of the Information System and suspend any part of the Services provided or supported under this Agreement and (b) suspend and withhold performance of HSS's obligations under this Agreement.
Customer will not be entitled to any compensation, refund or reduction in charges as a result of such action.
Customer agrees that any such disabled access and suspension from the Information System will not constitute or result in actual or constructive termination or abandonment of this Agreement, or a waiver or release of any right to terminate.
HSS may charge Customer for the cost relating to such disabling and suspending and, if Customer's defaults are cured as required, re-enabling such access and resuming such obligations, if any, together with related intervention or administration fees.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, if a customer (franchisee) fails to comply with information system use regulations, rules, or policies, or is otherwise in default under the agreement, HSS (the service provider) has the discretion to disable the customer's access to the information system and suspend services. In such cases, the customer will not be entitled to any compensation, refund, or reduction in charges as a result of the suspension.
This means that if an Embassy Suites franchisee violates the terms of the agreement related to the information system, HSS can suspend services without providing any financial reimbursement to the franchisee. The FDD clarifies that this suspension does not constitute a termination or abandonment of the agreement, nor does it waive HSS's right to terminate the agreement in the future.
Furthermore, HSS may charge the franchisee for the costs associated with disabling and suspending access, as well as the costs of re-enabling access and resuming obligations if the franchisee cures the defaults. These charges can include intervention or administration fees. This provision highlights the importance of adhering to the information system use regulations to avoid service interruptions and additional expenses.