What rights, title, or interest does an Embassy Suites applicant obtain in the Franchise Information?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Certain information concerning Franchisor's system for the Brand, including the Disclosure Document (if required under applicable law), the manual and the Franchise Agreement (together, the "Franchise Information"), has been made available to Applicant. Applicant is generally familiar with the Franchise Information and its requirements and is applying for the form of Franchise Agreement provided. Applicant undertakes to treat the manual which it may receive from Franchisor as confidential. Applicant acknowledges and agrees that the Franchise Information is the property of Hilton Worldwide and/or the Entities, and that Applicant obtains no right, title or interest in or to any of the Franchise Information. Applicant agrees not to use the Franchise Information unless and until a Franchise Agreement is entered into and then in accordance with the terms and conditions of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, an applicant obtains no right, title, or interest in the Franchise Information. The Franchise Information, which includes the Disclosure Document, the manual, and the Franchise Agreement, remains the property of Hilton Worldwide and/or its Entities.
An applicant's access to and use of the Franchise Information is contingent upon entering into a Franchise Agreement with Embassy Suites. Until such an agreement is in place, the applicant is not authorized to utilize the Franchise Information. Even after a Franchise Agreement is established, the applicant's use of the Franchise Information is strictly governed by the terms and conditions outlined in that agreement.
Furthermore, the applicant is obligated to treat the manual received from Embassy Suites as confidential. This underscores the proprietary nature of the Franchise Information and the importance of safeguarding it from unauthorized disclosure or use. This is a fairly standard practice in franchising, as the franchise's operating manual contains trade secrets and other confidential information that is essential to the brand's success.