Is the Embassy Suites maker's obligation to pay the Development Incentive Note absolute and unconditional?

According to Embassy Suites's 2025 Franchise Disclosure Document, the Maker's obligation to pay the Development Incentive Note is indeed absolute and unconditional. This means that the franchisee's commitment to repay the note is firm and not subject to any exceptions or conditions.

Specifically, the FDD states that all payments must be made without any form of setoff, deduction, offset, recoupment, or counterclaim. This provision protects Embassy Suites by ensuring that the franchisee cannot withhold payments due to any disputes or perceived grievances. The franchisee is obligated to make the full payment as agreed, regardless of any other issues that may arise.

This absolute and unconditional obligation is a significant commitment for the franchisee. It eliminates any leverage the franchisee might otherwise have in resolving disputes related to the franchise agreement. Prospective franchisees should carefully consider this aspect and ensure they fully understand the implications before signing the agreement. It is advisable to seek legal counsel to review the terms and assess the potential risks associated with this unconditional payment obligation.