Which sections of the Embassy Suites Franchise Agreement outline the franchisee's obligations related to ongoing product/service purchases?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ind more detailed information about your obligations in these agreements and in other Items of this Disclosure 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 | ||
| b. Pre-opening purchases / leases | 1, 6.1.2, 6.2, 6.3; Addendum | 1.1 and 2.1; Order Doc 1.1 to 1.11 and 4 to 10; Schedule B 1 | 5, 6, 7, 8 and 11 |
| c. Site development and other pre-opening requirements | 1, 5.1.17, 6.2, 6.3 and 6.5; |
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 related to ongoing product and service purchases. Specifically, the table within Item 9 details these obligations and cross-references the relevant sections in the Franchise Agreement, HITS Agreement, and other Disclosure Document Items.
The sections in the Franchise Agreement pertaining to ongoing product/service purchases are 1, 5.1.3 and 5.1.6, as well as section 3 of the Spa Amendment. The corresponding section in the HITS Agreement is 2.1. These sections likely contain detailed information about approved suppliers, purchasing standards, and other requirements related to maintaining brand standards and operational consistency.
For a prospective Embassy Suites franchisee, understanding these obligations is crucial. It is important to carefully review these sections to determine the extent of required purchases, any restrictions on suppliers, and the potential costs associated with these ongoing purchases. This information will help in assessing the overall financial viability and operational requirements of the franchise.