What section of the Embassy Suites Franchise Agreement discusses assignment of contract by the franchisor?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
is strictly a7t y4ou r own risk. We will not be liable for any losses and/or da | m 2 a 0 g 2 es 5 in U co S nn e E cti M on B wi A th S the S u Y se S of U ou I r T we E b S site . | |---|---|
| Provision | Section in Franchise Agreement ("FA"), Spa Amendment and HITS Agreement | Summary |
|---|---|---|
| return all copies of the eforea spa Manual, cancel all assumed | ||
| name or equivalent registrations and transfer any domain name | ||
| listings and registrations that contain any reference to the eforea | ||
| name to us, and cease representing yourself or the hotel as then | ||
| or formerly operating an eforea spa. | ||
| HITS Agreement 4.2 | You must stop using our software and related documents, return | |
| all copies to us, and certify to us that you have done so. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the section in the Franchise Agreement that discusses the assignment of the contract by the franchisor is FA §12.1. This section outlines Embassy Suites's right to assign or transfer the Franchise Agreement and any of its rights, duties, or assets to another party without the franchisee's consent.
The condition for this assignment is that the assignee must assume all of Embassy Suites's obligations to allow the franchisee to continue operating the hotel. This means that if Embassy Suites sells the franchise to a new company, that company must honor the existing agreement and allow the franchisee to continue running the hotel under the terms of the original agreement.
This is a fairly standard clause in franchise agreements, as it allows the franchisor flexibility in managing its business. However, it is important for a prospective Embassy Suites franchisee to understand that the agreement can be transferred to a new entity, which could potentially change the nature of the relationship. It would be prudent to seek legal counsel to fully understand the implications of this clause.