Under what conditions can the Embassy Suites agreement be terminated with an opportunity to cure?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1 Termination with Opportunity to Cure. We may terminate this Agreement by written notice to you and opportunity to cure at any time before its expiration on any of the following grounds:
- 13.1.1 You fail to pay us any sums due and owing to us or our Affiliates under this Agreement or to pay or fund any amounts due under any of Your Hotel Agreements within the cure period set forth in the notice, which shall not be less than ten (10) days;
- 13.1.2 You fail to commence or complete the Hotel Work by the applicable deadline date, including any extensions, or fail to open the Hotel on the Opening Date, and do not cure that default within the cure period set forth in the notice, which shall not be less than ten (10) days;
13.1.3 You do not purchase or maintain insurance required by this Agreement or do not reimburse us for our purchase of insurance on your behalf within the cure period set forth in the notice, which shall not be less than ten (10) days; or
13.1.4 You fail to comply with any other provision of this Agreement, the Manual or any Standard, or you breach a representation or warranty made in this Agreement, and you do not cure that default within the cure period set forth in the notice, which shall not be less than thirty (30) days.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Embassy Suites may terminate the franchise agreement with written notice and an opportunity to cure under specific conditions. These conditions include failure to pay sums due to Embassy Suites or its affiliates, or failure to fund amounts due under any of the franchisee's hotel agreements within the specified cure period, which will not be less than ten days.
Additional reasons for termination with an opportunity to cure include failing to commence or complete hotel work by the applicable deadline, including extensions, or failing to open the hotel by the opening date, without curing the default within a cure period of no less than ten days. Furthermore, Embassy Suites may terminate the agreement if the franchisee fails to purchase or maintain required insurance or fails to reimburse Embassy Suites for insurance purchased on the franchisee's behalf within a cure period of no less than ten days.
Finally, Embassy Suites can terminate the agreement if the franchisee fails to comply with any other provision of the agreement, the manual, or any standard, or if the franchisee breaches a representation or warranty made in the agreement, and the franchisee does not cure the default within a cure period of no less than thirty days. These cure periods and conditions are designed to give the franchisee a chance to rectify the issues before termination occurs, which is a fairly standard practice in franchising.