factual

Regarding the Embassy Suites franchise agreement, how are its covenants, terms, or provisions with continuing obligations treated after the agreement's expiration or termination?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You acknowledge and agree: (i) the expiration or termination of the Franchise Agreement will terminate all of your rights to operate an eforea spa; and (ii) this Amendment can be terminated for any of the grounds set forth in the termination provisions of the Franchise Agreement, whether or not the Franchise Agreement is also terminated, following which you will have no further right to use the name "eforea" in connection with the operation of a spa at the Hotel Site.

Your Obligations On Termination or Expiration.

In the event of a termination or expiration with respect to your right to operate the spa as an eforea spa, in addition to, and not in lieu of, any of your obligations that arise on termination or expiration of the Franchise Agreement, you will immediately:

  • (a) cease using the eforea name, and any other names, marks, trade dress, systems, insignia, symbols, and other rights, procedures and methods licensed to you under this eforea Amendment with respect to the operation of a spa, and any confusingly similar names, marks, trade dress, systems, insignia, symbols, procedures and methods;

  • (b) deliver all goods and materials containing that portion of the Marks related to the operation of an eforea spa to us and we will have the sole and exclusive use of any items containing those Marks;

Source: Item 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to the 2025 Embassy Suites Franchise Disclosure Document, the treatment of covenants, terms, or provisions with continuing obligations after the agreement's expiration or termination is addressed specifically within the context of operating a spa. Upon termination or expiration of the franchise agreement, the franchisee's rights to operate an eforea spa also terminate.

Specifically, the franchisee must immediately cease using the "eforea" name, along with any related marks, trade dress, systems, insignia, symbols, and other licensed rights associated with the spa's operation. Furthermore, all goods and materials bearing the marks related to the eforea spa operation must be delivered to Embassy Suites, granting Embassy Suites the exclusive use of these items.

This clause ensures that upon termination or expiration, the franchisee relinquishes all rights and materials associated with the eforea spa, preventing any continued use of Embassy Suites's intellectual property. This is in addition to any other obligations that arise on termination or expiration of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.