What sections of the Embassy Suites Franchise Agreement address the franchisee's obligations regarding trademarks and proprietary information?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Section in HITS Agreement | Disclosure Document Item |
|---|---|---|---|
| h. Trademarks and Proprietary Information | 1, 5.1.14 and 9; Addendum; 3 and 5 of Eforea Spa Amendment | 1.1, 2.1, 2.3; Order Doc 7; Schedule A, B-2 | 13 and 14 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 50–52)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those pertaining to trademarks and proprietary information. Specifically, the table within Item 9 indicates that these obligations are detailed in Sections 1, 5.1.14, and 9 of the Franchise Agreement, as well as in the Addendum and Sections 3 and 5 of the Eforea Spa Amendment. The corresponding sections in the HITS Agreement are 1.1, 2.1, and 2.3; Order Document 7; and Schedules A and B-2. Disclosure Document Items 13 and 14 also relate to these obligations.
For a prospective Embassy Suites franchisee, this means that the Franchise Agreement, along with the Eforea Spa Amendment and HITS Agreement, contains legally binding requirements regarding the use and protection of Embassy Suites' trademarks and proprietary information. These sections likely cover aspects such as proper trademark usage in signage and advertising, confidentiality of business practices, and restrictions on disclosing sensitive information. Understanding these obligations is crucial, as failure to comply could result in penalties or termination of the franchise agreement.
It is important for potential franchisees to carefully review these sections of the agreements with legal counsel to fully understand the scope of their responsibilities. This includes understanding what constitutes proprietary information, how trademarks can be used, and what measures must be taken to protect this information. Furthermore, franchisees should be aware of the implications of violating these terms, including potential legal action from Embassy Suites.