What constitutes an 'Affiliate' of an entity related to an Embassy Suites By Hilton franchise?

According to the 2025 Franchise Disclosure Document, for the purposes of the Embassy Suites By Hilton franchise agreement, an 'Affiliate' is defined as any natural person or firm, corporation, partnership, limited liability company, association, trust, or other entity that directly or indirectly Controls, is Controlled by, or is under common Control with, the subject entity.

This definition is important because it broadens the scope of responsibility and potential liability beyond just the franchisee. For example, if a franchisee is a corporation, its parent company or subsidiaries could be considered affiliates. This means that Embassy Suites By Hilton can hold these related entities accountable for the franchisee's actions or inactions under the franchise agreement.

For a prospective Embassy Suites By Hilton franchisee, understanding this definition is crucial. It means that their business dealings and relationships with other entities could have implications for their franchise agreement. They should carefully consider the structure of their business and any potential affiliations before entering into a franchise agreement with Embassy Suites By Hilton.