Does the issuance and execution of this letter agreement or the granting of any conditions provided in this letter agreement constitute an obligation on the Franchisor's part to provide the same at any future date for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this letter agreement are applicable only for the Hotel and the parties to this letter agreement.
Issuance and execution of this letter agreement or the granting of any conditions provided in this letter agreement does not constitute an obligation on Franchisor's part to provide the same at any future date.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the issuance and execution of the letter agreement, or the granting of any conditions within it, does not obligate Embassy Suites to provide the same terms or conditions at any future date. This is explicitly stated within the general provisions of the letter agreement. The letter agreement applies specifically to the hotel and the parties involved in that particular agreement.
This clause clarifies that each agreement is a one-time arrangement and does not set a precedent for future dealings. An Embassy Suites franchisee cannot expect to receive similar considerations or terms in subsequent agreements simply because they were granted in a previous instance. This ensures that Embassy Suites retains the flexibility to evaluate each situation independently and make decisions based on the specific circumstances at hand.
For a prospective Embassy Suites franchisee, this means that any benefits or conditions negotiated within a letter agreement are not guaranteed to be repeated in the future. Each new agreement will be assessed on its own merits, and the franchisee should not rely on past arrangements as a basis for future expectations. This underscores the importance of carefully reviewing and negotiating each agreement individually to ensure that the terms meet the franchisee's needs for that specific situation.