What is Embassy Suites By Hilton's basis for entering into the franchise agreement with the franchisee?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Agreement is entered between Hilton Franchise Holding LLC ("we," "us," "our" or "Franchisor") and the Franchisee set forth in the Addendum ("you," "your" or "Franchisee"), and is dated as of the Effective Date. We and you may collectively be referred to as the "Parties."
INTRODUCTION
We are an Affiliate of Hilton Worldwide. Hilton Worldwide and its Affiliates own, license, lease, operate, manage and provide various services for the Network. We are authorized to grant licenses for selected, first-class, independently owned or leased hotel properties, to operate under the Brand. You have expressed a desire to enter into this Agreement with us to obtain a license to use the Brand in the operation of a hotel at the address or location described in the Addendum.
NOW, THEREFORE, in consideration of the premises and the undertakings and commitments of each Party to the other Party in this Agreement, the Parties agree as follows:
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the franchise agreement is entered into based on mutual promises and commitments between Hilton Franchise Holding LLC and the franchisee. Embassy Suites By Hilton is an affiliate of Hilton Worldwide, which owns, licenses, and manages a network of hotels. Hilton Franchise Holding LLC is authorized to grant licenses for independently owned or leased hotel properties to operate under the Embassy Suites By Hilton brand.
The agreement is made because the franchisee has expressed a desire to obtain a license from Embassy Suites By Hilton to use the brand in the operation of a hotel at a specific location detailed in the addendum. This indicates that the franchisee's application and commitment to operate the hotel under the standards and specifications of the Embassy Suites By Hilton brand are key factors in the agreement.
The franchise agreement outlines the specific obligations, responsibilities, and benefits for both Embassy Suites By Hilton and the franchisee. It includes definitions of key terms such as 'Affiliate' and 'Agreement' to ensure clarity and mutual understanding. The agreement is legally binding, with both parties agreeing to the terms and conditions outlined within the document and its associated exhibits, attachments, and addenda.