What is the 'Effective Date' referring to in the Embassy Suites By Hilton Guaranty?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS U.S. GUARANTY | OF FRANCHISE AGREEMENT ("Guaranty") is executed as of [Date] | ||
|---|---|---|---|
| ("Effective Date") by, | a[jointly, severally, | ||
| individually and collectively] | ("Guarantor"), in favor of HILTON FRANCHISE HOLDING | LLC, a Delaware | |
| limited liability company | confirm Franchisor entity, as consideration of and as an | ||
| ("Franchisor") | |||
| inducement to Franchisor to execute the franchise agreement with | an Effective Date of [Date] | (referred to | |
| in | collectively, along with all applicable amendments, addenda, riders, supplemental | ||
| this Guaranty | |||
| agreements and assignments, | as the "Franchise | Agreement") between | Franchisor and |
| , | a | ("Franchisee"). Capitalized | |
| terms not otherwise defined in this Guaranty shall have the same meaning as in the Franchise | |||
| Agreement. Guarantor agrees as follows: |
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Effective Date in the context of the U.S. Guaranty of Franchise Agreement refers to the date on which the Guaranty is executed. The document states that the Guaranty is executed "as of [Date] ('Effective Date')." This date signifies when the guarantor's obligations under the guaranty become active, making it a critical reference point for determining the start of their commitment.
For a prospective Embassy Suites By Hilton franchisee, understanding the Effective Date is crucial because it marks the commencement of the guarantor's responsibilities. The guarantor, by signing the guaranty, agrees to certain obligations that are tied to the Franchise Agreement. The Effective Date, therefore, determines when these obligations begin, impacting the legal and financial responsibilities of the guarantor.
The FDD also mentions that all applicable amendments, addenda, riders, and supplemental agreements are collectively considered part of the Franchise Agreement. This means that the Effective Date applies not only to the initial agreement but also to any subsequent modifications or additions. Franchisees and their guarantors should pay close attention to this date, as it serves as a key reference point for all matters related to the guaranty and the overall Franchise Agreement with Embassy Suites By Hilton.