Regarding disputes over Embassy Suites Marks, who has the right to handle them?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to control any administrative proceedings or litigation involving a Mark licensed by us to you. We will have the sole right and responsibility to handle disputes with third parties concerning use of the Marks or the System. The protection of the Marks and their distinguishing characteristics as standing for the System is important to all of us. For this reason, you must immediately notify us of any infringement of or challenge to your use of any of the Marks. You may not communicate with any other person regarding any such infringement, challenge or claim. We will take the action we consider appropriate with respect to such challenges and claims and only we will have the right to handle disputes concerning the Marks or the System. You must fully cooperate with us in these matters. Under the terms of the Franchise Agreement, you appoint us as your exclusive attorney-in-fact, to defend and/or settle all disputes of this type. You must sign any documents we believe are necessary to obtain protection for the Marks and the System and assign to us any claims you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final. All recoveries made as a result of disputes with third parties regarding the System or the Marks will be for our account.
Source: Item 13 — TRADEMARKS (FDD pages 70–72)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites retains the sole right and responsibility to handle disputes with third parties concerning the use of the Marks or the System. This includes controlling any administrative proceedings or litigation involving a Mark licensed by them to the franchisee.
For a prospective franchisee, this means that if any disputes arise with third parties regarding the use of Embassy Suites's trademarks, service marks, or the overall System, the franchisee is not authorized to handle these disputes directly. Instead, the franchisee must immediately notify Embassy Suites of any infringement or challenge to the use of the Marks and fully cooperate with them in these matters. The franchisee is prohibited from communicating with any other person regarding such infringements, challenges, or claims.
Embassy Suites will then take the action it considers appropriate, and its decision regarding the prosecution, defense, and settlement of the dispute will be final. The Franchise Agreement appoints Embassy Suites as the franchisee's exclusive attorney-in-fact to defend and/or settle all such disputes. Furthermore, all recoveries made as a result of these disputes will be for Embassy Suites's account. This arrangement is typical in franchising, as it allows the franchisor to maintain brand consistency and control over its intellectual property.
This arrangement centralizes control over trademark disputes with Embassy Suites, ensuring a consistent legal strategy and protecting the overall brand. However, it also means that franchisees relinquish control over these disputes and must rely on Embassy Suites's judgment and actions. Franchisees are obligated to sign any documents Embassy Suites deems necessary to protect the Marks and the System and to assign any related claims to Embassy Suites.