Under what condition will Embassy Suites reimburse a franchisee for expenses related to trademark disputes?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
9.4 Trademark Disputes.
- 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's 2025 Franchise Disclosure Document, franchisees may be reimbursed for expenses related to trademark disputes under specific conditions. Embassy Suites will reimburse a franchisee for expenses they incur as a direct result of activities undertaken at Embassy Suites's prior written request, specifically related to the trademark dispute at issue. However, Embassy Suites will not cover any other expenses incurred for cooperating with them or their affiliates.
This means that if a trademark dispute arises, the franchisee must first obtain written approval from Embassy Suites before taking any action. Any activities undertaken without this prior written consent will not be eligible for reimbursement. This policy ensures that Embassy Suites maintains control over how trademark disputes are handled and that franchisees do not incur unnecessary expenses without prior authorization.
This is a fairly standard practice in franchising, as franchisors typically want to control the defense of their trademarks. It is important for prospective Embassy Suites franchisees to understand this policy and to communicate effectively with the franchisor regarding any potential trademark issues to ensure they can obtain the necessary approvals and potential reimbursement for eligible expenses.