What obligations must an assignee of the Embassy Suites Franchise Agreement assume?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement ("FA"), Spa Amendment and HITS Agreement | Summary |
|---|---|---|
| return all copies of the eforea spa Manual, cancel all assumed | ||
| name or equivalent registrations and transfer any domain name | ||
| listings and registrations that contain any reference to the eforea | ||
| name to us, and cease representing yourself or the hotel as then | ||
| or formerly operating an eforea spa. | ||
| HITS Agreement 4.2 | You must stop using our software and related documents, return | |
| all copies to us, and certify to us that you have done so. | ||
| j. Assignment of contract by us | FA §12.1 | We may assign or transfer the Franchise Agreement and any of our rights, duties or assets to any person or entity without your consent so long as the assignee assumes all of our obligations to permit you to operate the Hotel. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Embassy Suites can assign or transfer the Franchise Agreement, including all associated rights, duties, and assets, to another party without the franchisee's consent. However, there is a condition: the assignee must assume all of Embassy Suites' obligations to allow the franchisee to continue operating the hotel.
This means that if Embassy Suites decides to transfer the franchise agreement to a new entity, that entity must take on all of Embassy Suites' responsibilities and commitments outlined in the original agreement. This provision protects the franchisee by ensuring that the terms and conditions under which they operate their Embassy Suites hotel remain consistent even if the ownership of the franchise agreement changes hands.
For a prospective Embassy Suites franchisee, this clause offers some security. It ensures that a change in franchisor does not automatically lead to a renegotiation of terms or a disruption in the support and resources they receive. The new franchisor is legally bound to uphold the existing agreement, providing continuity and stability for the franchisee's business operations.