Under what conditions can Embassy Suites withhold consent or approval as required in the franchise agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.6.1 Wherever our consent or approval is required in this Agreement, unless the provision specifically indicates otherwise, we have the right to withhold our approval at our option, in our business judgment, taking into consideration our assessment of the long-term interests of the System overall.
We may withhold any and all consents or approvals required by this Agreement if you are in default or breach of this Agreement.
Our approvals and consents will not be effective unless given in writing and signed by one of our duly authorized representatives.
- 16.6.2 You agree not to make a claim for money damages based on any allegation that we have unreasonably withheld or delayed any consent or approval to a proposed act by you under the terms of this Agreement.
You also may not claim damages by way of set-off, counterclaim or defense for our withholding of consent.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites has the right to withhold consent or approval in certain situations. Unless specifically stated otherwise in the franchise agreement, Embassy Suites can withhold approval at its discretion, using its business judgment and considering the long-term interests of the overall system. This means Embassy Suites has considerable latitude in making these decisions.
Embassy Suites may also withhold any and all consents or approvals if the franchisee is in default or breach of the franchise agreement. This provision protects Embassy Suites from potential risks associated with franchisees who are not meeting their contractual obligations. Any approvals or consents given by Embassy Suites must be in writing and signed by an authorized representative to be considered effective.
The franchise agreement also stipulates that franchisees cannot make claims for money damages based on allegations that Embassy Suites has unreasonably withheld or delayed any consent or approval. Additionally, franchisees are prohibited from claiming damages through set-off, counterclaim, or defense due to Embassy Suites's withholding of consent. This clause limits the franchisee's legal recourse in such situations, highlighting the importance of understanding the conditions under which Embassy Suites may withhold consent.