What are the restrictions on representing oneself as an Embassy Suites hotel after termination or expiration of the Franchise Agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
13.6 Your Obligations on Termination or Expiration. On termination or expiration of this Agreement, you will immediately:
13.6.1 pay all sums due and owing to us or any of our Affiliates, including any expenses incurred by us in obtaining injunctive relief for the enforcement of this Agreement;
13.6.2 cease operating the Hotel as a System Hotel and cease using the System;
13.6.3 cease using the Marks, the Trade Name, and any confusingly similar names, marks, trade dress systems, insignia, symbols, or other rights, procedures, and methods.
You will deliver all goods and materials containing the Marks to us and we will have the sole and exclusive use of any items containing the Marks.
You will immediately make any specified changes to the location as we may reasonably require for this purpose, which will include removal of the signs, custom decorations, and promotional materials;
13.6.4 cease representing yourself as then or formerly a System Hotel or affiliated with the Brand or the Network;
13.6.5 return all copies of the Manual and any other Proprietary Information to us;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must immediately cease representing themselves as a current or former Embassy Suites hotel or as being affiliated with the Embassy Suites brand or network. This means the franchisee can no longer use the Embassy Suites name, trademarks, or any similar identifying marks to promote or operate their hotel.
To ensure compliance, the franchisee must also make any changes to the hotel location that Embassy Suites reasonably requires. This includes removing all Embassy Suites signs, custom decorations, and promotional materials from the premises. Additionally, the franchisee is obligated to return all copies of the Embassy Suites Manual and any other proprietary information to the franchisor.
These restrictions are put in place to protect the Embassy Suites brand and prevent any potential confusion among customers. By enforcing these post-termination obligations, Embassy Suites ensures that the public can clearly distinguish between hotels that are part of the Embassy Suites system and those that are not, maintaining the integrity and reputation of the brand.