Who is the 'Franchisee' in the context of the Embassy Suites By Hilton Guaranty?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
eement is deleted in its entirety and replaced with the following:
- 16.11.1 you have independently investigated the risks of operating the Hotel and a spa under the Brand, including current and potential market conditions and competitive factors and risks, and have made an independent evaluation of all such matters and reviewed our Franchise Disclosure Document, if applicable.
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- Original Document. This Amendment may be executed in any number of 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.
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- Authority. Franchisee represents and warrants that the individual signing this Amendment on its behalf has the necessary authority and legal capacity to execute this instrument and represent Franchisee.
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- Effect. The terms of this Amendment are expressly made subject to and are governed by the Franchise Agreement. Except as specifically amended by this Amendment, the Franchise Agreement shall continue in full force and effect. In the event of a conflict between the terms of the Franchise Agreement and this Amendment, this Amendment shall control.
IN WITNESS WHEREOF the parties have executed this Amendment as indicated below to take effect as of the Effective Date.
[INSERT FRANCHISEE ENTITY], a [INSERT TYPE OF ENTITY] HILTON FRANCHISE HOLDING LLC, a Delaware limited liability company Executed: Executed:
EXHIBIT E
U.S. GUARANTY OF FRANCHISE AGREEMENT
Insert Hotel Name
[THE BRACKETED LANGUAGE IS INSERTED FOR A SITE RELATED GUARANTY WITH TENANT-IN-COMMON (TIC) OWNERSHIP]
| 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") | |||
| induce |
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the 'Franchisee' is defined within the context of the U.S. Guaranty of Franchise Agreement. Specifically, the document states that the Guaranty is an inducement to the Franchisor (Hilton Franchise Holding LLC) to execute the Franchise Agreement with the entity identified as the 'Franchisee'. This indicates that the Franchisee is the party entering into the actual franchise agreement with Hilton Franchise Holding LLC to operate an Embassy Suites By Hilton hotel.
In simpler terms, the Franchisee is the individual or business entity that is granted the right to operate an Embassy Suites By Hilton hotel under the terms and conditions outlined in the Franchise Agreement. The Guaranty serves as a form of security or assurance to Hilton Franchise Holding LLC that the Franchisee will meet its financial and operational obligations. This is a common practice in franchising, especially when the Franchisee is a newly formed entity or has limited operating history.
Prospective Embassy Suites By Hilton franchisees should carefully review the Franchise Agreement and the U.S. Guaranty to fully understand their obligations and the implications of the Guaranty. They should also seek legal counsel to ensure they are aware of all the terms and conditions before signing any agreements.