Can an Embassy Suites By Hilton franchisee demand a renewal of their franchise agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Executed on:# MINNESOTA ADDENDUM TO FRANCHISE AGREEMENT
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- Section 3 and Section 13 are amended to provide that Minnesota law provides franchisees with certain termination and non-renewal rights. Minnesota Statutes, Section 80C.14, subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, Minnesota franchisees have specific non-renewal rights mandated by Minnesota Statutes, Section 80C.14, subdivisions 3, 4, and 5. These statutes require that, except in certain specified cases, a franchisee must be given 180 days' notice for non-renewal of the franchise agreement. This amendment to the franchise agreement ensures that Embassy Suites By Hilton franchisees in Minnesota receive the legally required notice period before non-renewal, providing them with ample time to prepare for the end of their franchise term or to negotiate potential renewal terms. This protection is particularly important for franchisees as it allows them to make informed decisions about their business's future.
For prospective Embassy Suites By Hilton franchisees in Minnesota, this addendum offers a degree of security and predictability. The 180-day notice period allows franchisees to plan their exit strategy, explore other business opportunities, or attempt to renegotiate the franchise agreement. This contrasts with situations where franchisees might face abrupt non-renewal decisions, potentially disrupting their business operations and financial stability. The Minnesota addendum ensures that Embassy Suites By Hilton complies with state law, providing a more transparent and legally sound franchising relationship.
It is important to note that these non-renewal rights apply specifically to Minnesota franchisees due to state-specific franchise laws. Franchisees in other states may not have the same level of protection regarding non-renewal notices. Therefore, prospective franchisees should carefully review the franchise agreement and any state-specific addenda to understand their rights and obligations fully. Consulting with a franchise attorney is advisable to ensure a comprehensive understanding of the legal landscape governing the franchise agreement and renewal options.