What are the immediate obligations of an Embassy Suites franchisee upon 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: | | | | return all copies of the eforea spa Manual, cancel all assumed | | | | name or equivalent registrations and transfer any domain name | | | | listings and registrations that contain any reference to the eforea | | | | name to us, and cease representing yourself or the hotel as then | | | | or formerly operating an eforea spa. | | | HITS Agreement 4.2 | You must stop using our software and related documents, return | | | | all copies to us, and certify to us that you have done so.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee has specific immediate obligations. These obligations include actions related to the eforea spa (if applicable) and the Hotel Information Technology System (HITS) agreement.
Specifically, if the franchisee operates an eforea spa, they must return all copies of the eforea spa Manual. Additionally, they need to cancel any assumed name or equivalent registrations and transfer any domain name listings and registrations that contain any reference to the eforea name back to Embassy Suites. The franchisee must also cease representing themselves or the hotel as currently or formerly operating an eforea spa.
Furthermore, under the HITS Agreement, the franchisee is required to stop using Embassy Suites' software and related documents. All copies of the software and documents must be returned to Embassy Suites, and the franchisee must certify that they have completed this return. These obligations are designed to ensure a clean break and protect Embassy Suites' intellectual property and brand reputation after the franchise relationship ends.