Is Embassy Suites By Hilton allowed to use the System, Brand, and Marks in Other Businesses?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
receive an exclusive territory. You may face competition from other franchisees, from hotels that our affiliates own, or from other channels of distribution or competitive brands that we control. The standard Franchise Agreement permits us to own, operate, manage, franchise, license, lease, or affiliate or associate with any Other Business of any nature, whether in the lodging or hospitality industry or not, and whether under the Brand, a competitive brand, or otherwise, at any time and in any location. We and our affiliates have the right to engage in any Other Businesses, even if they compete with your Hotel, the Brand, System Hotels, or Network Hotels, and whether we or our affiliates start those businesses, or purchase, merge with, acquire, are acquired by, come under common ownership with, affiliate or associate with, such Other Businesses.
We may also: (a) modify the System by adding, altering, or deleting elements of the System; (b) use or license to others all or part of the System; (c) use the facilities, programs, services and/or personnel used in connection with the System in Other Businesses; and (d) use the System, the Brand, and the Marks in the Other Businesses.
Source: Item 12 — TERRITORY (FDD pages 67–70)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, Embassy Suites By Hilton has broad rights to utilize its System, Brand, and Marks in other business ventures. The standard Franchise Agreement explicitly permits Embassy Suites By Hilton to engage in various business activities, regardless of whether they are within the lodging or hospitality industry, and whether they operate under the Embassy Suites By Hilton brand, a competitive brand, or otherwise. This latitude extends to any location and at any time.
This means that as a franchisee, you acknowledge that Embassy Suites By Hilton can use its resources, including the System, Brand, and Marks, in businesses that may directly compete with your franchised hotel. This includes the ability to modify the System, license parts of it to others, and use facilities and personnel associated with the System in these other ventures. As a franchisee, you agree that you cannot claim damages or relief due to these activities, and Embassy Suites By Hilton will not be liable for claims of unfair competition or breach of contract arising from these activities.
Embassy Suites By Hilton and its affiliates are involved in a wide array of business activities within the lodging, hospitality, and related services sectors. These activities can be carried out directly or through parent companies and affiliates. Some of these activities may compete with your Embassy Suites By Hilton hotel, the System, and other hotels within the network. Embassy Suites By Hilton and its affiliates have the right to own, operate, manage, franchise, license, lease, affiliate with, acquire, establish, or serve as a franchisee or licensee for competitive guest lodging businesses or any other businesses or networks anywhere, at any time. This includes operating under any brands or marks, provided that any Restricted Area protections you may have are observed.
Furthermore, Embassy Suites By Hilton may form Strategic Partnerships with third-party companies or vendors, allowing guests to make reservations and Hilton Honors members to receive benefits at these businesses. These partnerships are considered "Other Businesses" under the Franchise Agreement. These Strategic Partners are not corporate affiliates of Embassy Suites By Hilton and do not offer franchises or management agreements for any of the Hilton Worldwide Brands. Embassy Suites By Hilton can enter into, terminate, or modify these partnerships at any time, and these partners' businesses may be located near your hotel, potentially increasing competition.