Who may administer the local marketing cooperatives for Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not required to participate in any marketing cooperative. We may occasionally develop local marketing programs that operate like cooperatives in that they may consist of a group of franchisees that pool their resources and actively work together on local marketing efforts. However, these cooperatives are not legal entities and do not operate from written governing documents. These cooperatives need not prepare annual or periodic financial statements. We may help form this type of cooperative whenever a group of franchisees wish to get together. Participation is voluntary. The contributions to these cooperatives vary depending on the voluntary contributions of members. These cooperatives may be administered by us, by franchisees, or by an advertising agency. If we participate in a cooperative, we can require it to be formed, changed, dissolved, or merged with another cooperative. We cannot guarantee that we will offer any cooperative marketing programs to franchisees in the future. Any plan that we offer in the future may differ from the plans we offered to franchisees in past years.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 FDD, Embassy Suites By Hilton does not require franchisees to participate in any marketing cooperative. However, Embassy Suites By Hilton may develop local marketing programs that function similarly to cooperatives, where franchisees pool resources for local marketing. These cooperatives are not formal legal entities and do not have written governing documents or financial statements. Participation in these programs is voluntary, and contributions vary based on the members' voluntary contributions.
The administration of these local marketing cooperatives for Embassy Suites By Hilton can be handled by one of three entities. These cooperatives may be administered by Embassy Suites By Hilton, by the franchisees themselves, or by an advertising agency. If Embassy Suites By Hilton participates in a cooperative, it retains the authority to require its formation, modification, dissolution, or merger with another cooperative.
It is important to note that Embassy Suites By Hilton does not guarantee the future availability of cooperative marketing programs to franchisees. Any plans offered in the future may differ from those offered in the past. This flexibility allows Embassy Suites By Hilton to adapt its marketing strategies based on changing market conditions and franchisee needs.