How are the boundaries of the Restricted Area determined for an Embassy Suites By Hilton franchise?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, while franchisees may be granted specific territorial restrictions known as a "Restricted Area Provision," the boundaries of any Restricted Area are not determined by a standard formula. Instead, the boundaries depend on the relevant market and competitive circumstances at the time the Franchise Agreement is signed. These boundaries are agreed upon by both parties.

The size and shape of a Restricted Area can vary from hotel to hotel. The FDD specifies that the boundaries may be delineated in several ways, including references to cities, metropolitan areas, counties, or other political subdivisions. They may also be defined by references to specific streets or highways, or by specifying an area encompassed within a radius of a certain distance from the hotel's front door.

It's important to note that the Restricted Area Provision typically restricts Embassy Suites By Hilton and its affiliates from operating or authorizing others to operate another 'Brand' hotel within the Restricted Area during a specific 'Restrictive Period,' which is usually shorter than the full term of the Franchise Agreement. The term 'Brand' specifically refers to hotels operated under the same Chain Code and Standards, excluding other brands or product lines containing "Embassy" in the name, as well as other Hilton brands such as "Hilton Garden Inn," "DoubleTree by Hilton" or "Homewood Suites by Hilton."