factual

What sections of the Embassy Suites Franchise Agreement cover site selection and acquisition/lease obligations?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

Obligation Section in Franchise Agreement Section in HITS Agreement Disclosure Document Item
a. Site selection and 1, 5.1.15 and 5.1.16; Not applicable 7 and 11
acquisition/lease Addendum

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 site selection and acquisition/lease responsibilities. Specifically, sections 1, 5.1.15 and 5.1.16, and the Addendum of the Franchise Agreement detail these obligations. The corresponding sections in the HITS Agreement are not applicable. Item 7 and 11 of the disclosure document also provide information regarding site selection and acquisition/lease.

For a prospective Embassy Suites franchisee, this means that the Franchise Agreement lays out specific requirements and guidelines for choosing a location and securing the property, whether through purchase or lease. Franchisees must carefully review these sections to understand their obligations and the franchisor's expectations regarding site criteria, approval processes, and lease terms.

Understanding these obligations is crucial because the location of the Embassy Suites hotel significantly impacts its potential success. Failing to comply with the franchisor's site selection criteria or lease requirements could lead to delays in opening or even termination of the franchise agreement. Therefore, prospective franchisees should seek legal counsel to fully understand their rights and responsibilities under these sections of the Franchise Agreement and Addendum.

It is also important to note that while the HITS Agreement is mentioned, the sections pertaining to site selection and acquisition/lease are marked as 'Not applicable.' This suggests that these responsibilities are primarily governed by the Franchise Agreement and related documents, rather than the HITS Agreement.

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.