Does a franchisee have the right to renew or extend the Embassy Suites By Hilton HITS Agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| Agreement | ||
|---|---|---|
| Change of Ownership: Generally, either the remaining Term | ||
| under the existing franchise agreement, or such other term as | ||
| we may approve. | ||
| Spa Amendment 2 | eforea spa: expires on the earlier of: (i) the termination of the | |
| Spa Amendment or (ii) the expiration or termination of the | ||
| Franchise Agreement. | ||
| HITS Agreement 1.1 | The HITS Agreement will run concurrently with the Franchise | |
| Agreement and will automatically terminate on the termination or | ||
| expiration of the Franchise Agreement. | ||
| b. Renewal or Extension of | FA §3 | You do not have the right to renew or extend the Franchise Agreement, including the Spa Amendment. |
| the term | HITS Agreement Not Applicable | The HITS Agreement will run concurrently with the Franchise Agreement. You do not have the right to renew or extend the HITS Agreement. |
| c. Requirements for you to renew or extend | FA – Not applicable | You do not have the right to renew or extend, but if we agree, in our sole discretion, to re-license, you may be asked to sign a contract with materially different terms and conditions from the original Franchise Agreement, and you must comply with any PIP performance conditions that we specify. |
| HITS Agreement Not Applicable | The HITS Agreement will run concurrently with the Franchise Agreement. You do not have the right to renew or extend, but if we agree, in our sole discretion, to re-license, you may be asked to sign a new HITS Agreement with materially different terms and conditions from the original HITS 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, franchisees do not have the right to renew or extend the HITS (Hilton Information Technology System) Agreement. The HITS Agreement runs concurrently with the Franchise Agreement and automatically terminates upon the termination or expiration of the Franchise Agreement.
While franchisees do not have a contractual right to renew or extend the HITS Agreement, Embassy Suites By Hilton may, at its sole discretion, agree to re-license the agreement. If Embassy Suites By Hilton agrees to re-license, the franchisee may be required to sign a new HITS Agreement with terms and conditions that are materially different from the original agreement.
This lack of a guaranteed renewal is a significant point for prospective franchisees. It means that continued operation under the Embassy Suites By Hilton brand after the initial term is not assured and is subject to the franchisor's approval and potentially new, less favorable terms. Franchisees should inquire about the typical conditions and terms offered during re-licensing to better understand the potential future costs and obligations.