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What section of the Embassy Suites HITS Agreement discusses the franchisee's obligations upon termination?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

| HITS Agreement | | You have no right to cure once your Franchise Agreement terminates. | | i. Your | | On termination or expiration of the Franchise Agreement you | | obligations on FA §13.6 | | must immediately: | | | 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 the 2025 Embassy Suites Franchise Disclosure Document, the franchisee's obligations upon termination or expiration of the Franchise Agreement are detailed in Section 13.6 of the Franchise Agreement, as referenced in the HITS Agreement. Additionally, HITS Agreement 4.2 outlines specific obligations related to software and documents.

Specifically, upon termination or expiration, the franchisee must immediately adhere to the stipulations set forth in FA §13.6. Furthermore, under HITS Agreement 4.2, the franchisee is required to discontinue the use of Embassy Suites' software and related documents, return all copies of these materials, and provide certification confirming the completion of these actions.

These obligations are critical for ensuring a smooth transition and protecting Embassy Suites' intellectual property and operational systems. Franchisees should carefully review these sections to understand their responsibilities and avoid potential legal or financial repercussions associated with non-compliance.

Understanding these obligations is essential for prospective franchisees as it highlights the importance of proper record-keeping and adherence to brand standards throughout the franchise term. It also underscores the need for a well-planned exit strategy, whether through renewal, sale, or termination, to ensure compliance with all contractual requirements.

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.