How must notices of default or termination be delivered under the Embassy Suites franchise agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.7.2 Notices of Default and Termination, or Threatened Litigation.
Any notice from you or from us declaring default of a provision of this Agreement, or potential or final termination of this Agreement, must be delivered in person, or by prepaid overnight courier delivery service, or by prepaid overnight United States mail, or by prepaid certified United States mail, return-receipt requested, if overnight delivery is not available to the notice address.
We will send notices under this Subsection only to your PLC.
You must send notices to us under this Subsection as follows: Hilton Franchise Holding LLC, Attention: General Counsel, 7930 Jones Branch Drive, Suite 1100, McLean, VA 22102.
Notice sent under this Subsection will be deemed effective on the earlier of: (a) receipt, or first refusal of delivery; (b) one (1) day after posting, if sent by overnight commercial delivery service or overnight United States Mail; or (c) three (3) days after placement in United States certified mail, return receipt requested.
- 16.7.3 Other Notices: If a Party wishes to send a notice to the other Party regarding any issue other than those issues specified in Subsection 16.7.2, the Party may send the notice by any method described in Subsection 16.7.2, or by email.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, any notice declaring default of a provision in the franchise agreement, or potential or final termination of the agreement, must be delivered in a specific manner. The notice must be delivered in person, by prepaid overnight courier delivery service, by prepaid overnight United States mail, or by prepaid certified United States mail with return-receipt requested, but only if overnight delivery is not available to the recipient's address.
Embassy Suites will send these notices only to the franchisee's Principal Legal Correspondent (PLC). The franchisee must send notices to Embassy Suites to Hilton Franchise Holding LLC, Attention: General Counsel, at 7930 Jones Branch Drive, Suite 1100, McLean, VA 22102.
The FDD specifies when a notice is considered effective. A notice sent via overnight commercial delivery or overnight U.S. Mail is deemed effective one day after posting. A notice sent via U.S. certified mail with return receipt requested is considered effective three days after placement in the mail. In either case, if delivery is refused, the notice is deemed effective upon the first refusal of delivery. For other notices, a party may send a notice to the other party regarding any issue other than those issues specified in Subsection 16.7.2, the party may send the notice by any method described in Subsection 16.7.2, or by email.
It is important for a prospective Embassy Suites franchisee to understand these notice requirements, as failure to adhere to them could have legal ramifications. Franchisees should ensure their PLC is properly designated and that they understand the acceptable methods for sending and receiving important notices to avoid any potential disputes or misunderstandings with Embassy Suites.