What are some of the 'Interim Remedies' that Embassy Suites may impose if a franchisee is in default of the franchise agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
13.3 Interim Remedies. If we send you a written notice that you are in default of this Agreement, we may elect to impose an Interim Remedy, including the suspension of our obligations under this Agreement and/or our or our Affiliates' obligations under Your Hotel Agreements.
13.3.1 We may suspend the Hotel from the Reservation Service and any reservation and/or website services provided through or by us.
We may remove the listing of the Hotel from any directories or advertising we publish.
If we suspend the Hotel from the Reservation Service, we may divert reservations previously made for the Hotel to other System Hotels or Network Hotels.
- 13.3.2 We may disable all or any part of the software provided to you under Your Hotel Agreements and/or may suspend any one or more of the information technology and/or network services that we provide or support under Your Hotel Agreements.
We may charge you for costs related to suspending or disabling your right to use any software systems or technology we provided to you, together with intervention or administration fees as set forth in the Standards.
13.3.3 We may revoke any financial accommodations (including but not limited to any Monthly Fee discounts, fee ramps or fee waivers) that we have granted and charge you the then-current standard fee or charge that would have otherwise applied absent the temporary financial accommodation.
13.3.4 You agree that our exercise of the right to Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement.
If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement.
You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee is in default of their agreement, Embassy Suites has the option to impose 'Interim Remedies'. These remedies are triggered when Embassy Suites sends a written notice of default to the franchisee.
One such remedy is the suspension of the hotel from the Reservation Service, which includes any reservation or website services provided by Embassy Suites. During this suspension, Embassy Suites may also remove the hotel's listing from any directories or advertising they publish and divert reservations to other hotels within their system or network.
Additionally, Embassy Suites can disable all or parts of the software provided to the franchisee under the Hotel Agreements and/or suspend any information technology or network services they provide or support. The franchisee may be charged for the costs associated with suspending or disabling the software and technology, along with intervention or administration fees as outlined in the Standards. Embassy Suites can also revoke any financial accommodations, such as discounts on Monthly Fees, fee ramps, or fee waivers, and charge the standard fee that would have applied without the temporary financial accommodation. The exercise of these interim remedies by Embassy Suites does not constitute a termination or abandonment of the agreement, nor does it waive any breach by the franchisee. The franchisee is not entitled to any compensation for losses incurred due to the exercise of these remedies.