Under what condition will Embassy Suites reimburse a franchisee for expenses related to a trademark dispute?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
9.4.1 You will immediately notify us of any infringement or dilution of or challenge to your use of any of the Marks and will not, absent a court order or our prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. We will take the action we deem appropriate with respect to such challenges and claims and have the sole right to handle disputes concerning use of all or any part of the Marks or the System. You will fully cooperate with us and our applicable Affiliates in these matters. We will reimburse you for expenses incurred by you as the direct result of activities undertaken by you at our prior written request and specifically relating to the trademark dispute at issue. We will not reimburse you for any other expenses incurred by you for cooperating with us or our Affiliates.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, franchisees may be reimbursed for expenses related to trademark disputes under very specific conditions. Embassy Suites will reimburse a franchisee for expenses they incur as a direct result of activities undertaken at Embassy Suites' prior written request, and specifically related to the trademark dispute at issue.
This means that if a franchisee independently incurs expenses related to a trademark dispute without first obtaining written approval from Embassy Suites, they will not be reimbursed. The reimbursement is limited to activities that Embassy Suites specifically requests the franchisee to undertake. Furthermore, the reimbursement is only for expenses directly tied to the trademark dispute itself.
This policy reflects the typical franchise model where the franchisor maintains control over brand protection and legal matters. It is crucial for prospective Embassy Suites franchisees to understand this process and ensure they obtain prior written authorization before incurring any expenses related to trademark disputes if they expect reimbursement.