What is the role of Hilton Worldwide in the Embassy Suites franchise application process?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This franchise application letter ("Application Letter") is provided to Hilton Franchise Holding LLC ("Franchisor"), a subsidiary of Hilton Worldwide Holdings Inc. ("Hilton Worldwide"), authorized to consider and process an application for a franchise to operate a hotel under the Brand at the Location in the United States ("Hotel"). The present or future subsidiaries and affiliates of Hilton Worldwide are collectively referred to as "entities" ("Entities"). Applicant understands that Franchisor is relying on the information provided in this application and all documents submitted by Applicant and co-owners and their agents, advisers and representatives in connection with or in support of the application, including, but not limited to, this Application Letter (together, the "Application"). Applicant agrees to supply such additional information, statements or data as may be requested by Franchisor.
-
- Applicant authorizes credit agencies/bureaus, financial institutions, companies and individuals to disclose to Hilton Worldwide any and all information for the purpose of Hilton Worldwide and the Entities completing any necessary credit and/or background investigations in connection with this Application and execution of any Franchise Agreement.
-
- Applicant, jointly and severally if applicable, agrees to indemnify and defend Hilton Worldwide and the Entities and their respective officers, directors, employees, agents, representatives, and assignees (collectively, the "Hilton Worldwide Indemnitees") against, and to hold them harmless from, all losses in connection with the Application and the Location, including breach of any representations, warranties or undertakings contained herein and all claims, demands, suits, causes of action, liabilities, losses or otherwise, directly or indirectly incurred (including legal and accounting fees and expenses), and including claims as a result of Franchisor processing the Application and/or approving a Franchise Agreement. Each Hilton Worldwide Indemnitee shall have the right independently to take any action it may deem necessary in its sole discretion to protect and defend itself against any threatened action subject to Applicant's indemnification, without regard to the expense, forum or other parties that may be involved. Each Hilton Worldwide Indemnitee shall have sole and exclusive control over the defense of any such action (including the right to be represented by counsel of its choosing) and over the settlement, compromise or other disposition thereof. Hilton Worldwide may rely on any information, statement or notice from the Applicant pertaining to the Location or Franchise Agreement without having to investigate or ascertain the accuracy of any fact or allegation in the information, statement ornotice.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Hilton Worldwide Holdings Inc. plays a significant role in the franchise application process. While Hilton Franchise Holding LLC, a subsidiary of Hilton Worldwide, is the franchisor that directly handles the application, Hilton Worldwide is authorized to conduct credit and background investigations on the applicant. This means Hilton Worldwide has access to the applicant's information from credit agencies, financial institutions, and other companies for the purpose of these investigations.
Furthermore, the applicant agrees to indemnify and defend Hilton Worldwide and its related entities (officers, directors, employees, etc.) against any losses connected to the application and the proposed location. This includes any breaches of representations, warranties, or undertakings made by the applicant, as well as any claims or liabilities incurred during the application process. Hilton Worldwide has the right to take any action it deems necessary to protect itself and has sole control over the defense of any action related to the application.
In essence, while the franchise agreement is with Hilton Franchise Holding LLC, Hilton Worldwide retains significant oversight and protection related to the application process. This arrangement suggests that Hilton Worldwide maintains a vested interest in ensuring the suitability and financial stability of potential Embassy Suites franchisees, even though the direct franchising relationship is managed through its subsidiary.