factual

What section of the Embassy Suites agreement details the franchisee's obligations upon termination or expiration of the agreement?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

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, section 10 of the contract outlines the franchisee's obligations upon termination or expiration of the agreement. This section specifically addresses the obligations related to operating a spa as an eforea spa.

Upon termination or expiration of the right to operate the spa, the franchisee must immediately cease using the "eforea" name, along with any related marks, trade dress, systems, insignia, symbols, and other licensed rights. Additionally, the franchisee is required to deliver all goods and materials containing the marks associated with the operation of the eforea spa to Embassy Suites, granting them sole and exclusive use of these items.

It is important to note that these obligations are in addition to, and do not replace, any other obligations that arise upon the termination or expiration of the Franchise Agreement itself. This ensures that Embassy Suites retains control over its branding and operational standards even after a franchise relationship ends.

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.