For an Embassy Suites By Hilton franchise, what is the relationship between the 'Effective Date' and the Addendum?
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."
"Effective Date" means the date set out in the Addendum on which this Agreement becomes effective.
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- All capitalized terms not expressly defined in this Addendum shall have the meanings set forth in the Agreement.
Except as expressly modified by this Addendum, the Agreement remains unmodified and in full force and effect.
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- This Addendum may be executed in counterparts, and delivered by facsimile or other electronic transmission, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
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 established between Hilton Franchise Holding LLC and the franchisee, as specified in the Addendum, and is officially dated as of the Effective Date. This indicates that the Addendum identifies the specific franchisee who is party to the agreement. The Effective Date, which is defined in the Addendum, marks the commencement of the agreement.
Several addenda may be included as part of the Franchise Agreement, such as addenda for shared facilities, state/territory-specific requirements, property improvement plans, or amendments for items such as an eforea spa or restaurant brand. These addenda modify or supplement the main Franchise Agreement to address specific circumstances or requirements. Terms that are capitalized but not defined within a specific addendum will carry the meanings as defined in the main Franchise Agreement.
Furthermore, the addenda may be executed in counterparts and transmitted electronically, with each counterpart considered an original. This allows for flexibility in finalizing the agreement. The Effective Date, as defined in the Addendum, is therefore crucial as it signifies when all aspects of the agreement, including any modifications or additions outlined in the addenda, come into force.
In essence, the Addendum provides key details such as the franchisee's identity and the Effective Date, while also serving as a vehicle for specific modifications or additions to the standard Franchise Agreement. Prospective franchisees should carefully review all addenda to fully understand their rights and obligations under the Embassy Suites By Hilton franchise agreement.