Does a franchisee have the right to renew or extend the Embassy Suites By Hilton Franchise Agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Re-licensing refers to the grant of a new franchise after the expiration of a prior franchise for the same hotel.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
The 2025 Embassy Suites By Hilton Franchise Disclosure Document includes information regarding the non-renewal of franchise agreements specifically for franchisees in Minnesota. According to the Minnesota Addendum to the Franchise Agreement, franchisees in Minnesota must be given 180 days' notice for non-renewal of the franchise agreement, except in certain specified cases. This suggests that while there may not be a guaranteed right to renew, Embassy Suites By Hilton does address the circumstances and notification periods related to non-renewal, particularly in Minnesota.
For prospective franchisees outside of Minnesota, the FDD does not explicitly detail a general right to renew or extend the franchise agreement. However, the document does mention "Re-licensing," which refers to the grant of a new franchise after the expiration of a prior franchise for the same hotel. This implies that franchisees may have the opportunity to obtain a new franchise agreement upon the expiration of their existing one, although the terms and conditions for such re-licensing are not specified in this excerpt.
Given the limited information in the provided excerpts, it is important for potential Embassy Suites By Hilton franchisees to directly inquire with the franchisor about the specific terms and conditions for renewal or re-licensing of their franchise agreement. Understanding the criteria, timelines, and any associated fees or requirements for renewal is crucial for long-term planning and investment decisions. Franchisees should also clarify whether the terms for renewal are consistent across all states or if they vary based on local laws and regulations, similar to the specific stipulations outlined for Minnesota.