What is the name of the agreement that allows an Embassy Suites franchisee to operate an eforea spa?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D-3
EFOREA SPA AMENDMENT TO FRANCHISE AGREEMENT
THIS EFOREA SPA AMENDMENT TO FRANCHISE AGREEMENT ("Amendment") is made and entered into by and between HILTON FRANCHISE HOLDING LLC, a Delaware limited liability company ("we," "us," or "our") and the franchisee entity ("you," or "your") set forth in the Addendum attached to the franchise agreement dated [INSERT DATE] ("Franchise Agreement") as of [INSERT DATE] ("Effective Date").
WHEREAS, the Franchise Agreement permits you to operate the Hotel as a [INSERT] Brand hotel ("Hotel"); you have applied to operate an eforea spa ("eforea spa") in connection with the operation of the Hotel; we are willing to accept such application and grant a license to you to use the Brand in the operation of an eforea spa at the Hotel Site pursuant to the Franchise Agreement as amended by this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are acknowledged, we and you agree as follows:
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- Terms. Capitalized terms in this Amendment have the meaning set forth in the Franchise Agreement, unless amended pursuant to Section 2 below.
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- Changes to Certain Defined Terms. Section 1 of the Franchise Agreement is amended as follows:
- (a) The following defined terms in Section 1 of the Franchise Agreement are deleted and replaced with the following:
"Hotel" means the property you will operate under this Agreement and includes all structures, facilities, appurtenances, furniture, fixtures, equipment, and entry, exit, parking and other areas located on the Hotel Site we have approved for your business, including an eforea spa, located on any land we approve in the future for additions, signs, parking or other facilities.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the agreement that allows a franchisee to operate an eforea spa is called the "EFOREA SPA AMENDMENT TO FRANCHISE AGREEMENT". This amendment is made between Hilton Franchise Holding LLC and the franchisee. The amendment grants the franchisee a limited, non-exclusive license to operate a spa using the eforea name and associated trademarks at the hotel site.
The EFOREA SPA AMENDMENT modifies the original Franchise Agreement to include terms specific to the spa operation. These modifications cover various aspects, such as defining "Gross Spa Revenue," outlining responsibilities for both the franchisor and franchisee, and specifying trade name usage. The amendment also includes operational requirements, such as the spa's opening date and adherence to system standards for training spa personnel.
Under the amendment, Embassy Suites franchisees are required to pay an initial fee of $25,000 for the right to operate the eforea spa. Additionally, a spa royalty fee of 2% of the Gross Spa Revenue is payable. The franchisee cannot lease or sublease commercial space within the eforea spa or operate another spa in association with the hotel. The amendment also stipulates that any transfer of the hotel ownership must include the eforea spa, and vice versa.
Upon termination or expiration of the franchisee's right to operate the eforea spa, the franchisee must cease using the eforea name and related trademarks, deliver all materials containing eforea marks to the franchisor, and make necessary changes to de-identify the spa. They must also return the eforea Spa Operations Standards Manual and cancel any registrations related to the use of the eforea name.