What is the relationship between a 'Controlling Affiliate' and the Hotel for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
[IF TIC:** You acknowledge and agree that: (1) each of you is jointly, severally, individually and collectively responsible for the Franchisee's obligations under this Agreement; (2) your obligations and liability to us is not limited by your tenant-in-common structure; (3) the transfer provisions of this Agreement apply to each of you; (4) [
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, an 'Affiliate' is defined as any entity that directly or indirectly Controls, is Controlled by, or is under common Control with the subject entity. When a franchisee operates as tenants-in-common, the FDD stipulates that one of the tenants-in-common is deemed to be the Controlling Affiliate.
For an Embassy Suites franchise, this means that if the franchisee's ownership is structured as a tenancy-in-common, the designated Controlling Affiliate assumes specific responsibilities. This Controlling Affiliate serves as the primary point of contact for all communications related to the franchise agreement. Embassy Suites will notify this designated person for all purposes related to the agreement.
This designation ensures clear lines of communication and responsibility within the franchise relationship, particularly when multiple parties share ownership. It streamlines interactions between Embassy Suites and the franchise owners, simplifying administrative processes and decision-making.