What actions are prohibited regarding the use of the Incentive provided by Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use any portion of the Incentive to make, offer, or authorize any Improper Payment or engage in any act violating any Anti-Corruption Law. If we reasonably believe that you have used the Incentive in violation of any Anti-Corruption Law, you must cooperate with our reasonable requests for information and permit us to inspect all books and records pertaining to your Hotel.
Source: Item 10 — FINANCING (FDD pages 52–53)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, franchisees are specifically prohibited from using any portion of the Incentive for certain unlawful activities. The Incentive cannot be used to make, offer, or authorize any Improper Payment, nor can it be used to engage in any act that violates any Anti-Corruption Law. This restriction ensures that franchisees adhere to legal and ethical standards in their business operations.
Embassy Suites By Hilton retains the right to monitor compliance with these anti-corruption measures. If Embassy Suites By Hilton reasonably believes that a franchisee has used the Incentive in violation of any Anti-Corruption Law, the franchisee is obligated to cooperate with Embassy Suites By Hilton's requests for information. This includes permitting Embassy Suites By Hilton to inspect all books and records pertaining to the Hotel.
This provision highlights the importance of ethical conduct and legal compliance in the operation of an Embassy Suites By Hilton franchise. Prospective franchisees should be aware of these restrictions and ensure that their business practices align with all applicable laws and regulations. Failure to comply could result in penalties or other adverse consequences.