What skills and characteristics of the franchisee are Embassy Suites relying on when entering into the franchise agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.11 Representations and Warranties. You warrant, represent and agree that all statements in your franchise application in anticipation of the execution of this Agreement, and all other documents and information submitted to us by you or on your behalf are true, correct and complete as of the date of this Agreement.
You further represent and warrant to us that:
16.11.1 you have independently investigated the risks of operating the Hotel under the Brand, including current and potential market conditions and competitive factors and risks, and have made an independent evaluation of all such matters and reviewed our franchise disclosure document, if applicable;
16.11.2 neither we nor our representatives have made any promises, representations or agreements other than those provided in the Agreement or in our franchise disclosure document provided to you in connection with the offer of this Agreement, if applicable, and you acknowledge that you are not relying on any promises, representations or agreements about us or the franchise not expressly contained in this Agreement in making your decision to sign this Agreement;
16.11.3 you have the full legal power authority and legal right to enter into this Agreement;
16.11.4 this Agreement constitutes a legal, valid and binding obligation and your entry into, performance and observation of this Agreement will not constitute a breach or default of any agreement to which you are a party or of any Law;
16.11.5 if you are a corporation, limited liability company, or other entity, you are, and throughout the Term will be, duly formed and validly existing, in good standing in the state in which you are organized, and are and will be authorized to do business in the state in which the Hotel is located;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Embassy Suites relies on the franchisee's capabilities in several key areas. Specifically, Embassy Suites requires that all statements made in the franchise application are true, correct, and complete. This indicates that Embassy Suites values honesty and accuracy in the information provided by the franchisee.
Furthermore, Embassy Suites expects the franchisee to have independently investigated the risks of operating a hotel under the Embassy Suites brand, including understanding market conditions and competitive factors. This demonstrates that Embassy Suites relies on the franchisee's business acumen and ability to conduct thorough due diligence. The franchisee must also acknowledge that they are not relying on any promises or representations outside of the franchise agreement and disclosure document, showing that Embassy Suites expects franchisees to make informed decisions based on official documentation.
Embassy Suites also requires that the franchisee possesses the full legal power, authority, and right to enter into the agreement, ensuring that the franchisee is legally capable of fulfilling their obligations. If the franchisee is a corporation or LLC, they must be duly formed, validly existing, and in good standing, highlighting the importance of a stable and legally compliant business entity. These conditions collectively suggest that Embassy Suites seeks franchisees who are not only financially stable and legally sound but also possess strong business acumen and a commitment to honesty and independent decision-making.