What happens if either the Embassy Suites By Hilton agreement or the other hotel's agreement is terminated?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We expressly reserve the right to withdraw our consent and, on notice, require you to discontinue the Shared Facilities Arrangement if:
- c) either the Agreement or the [Hotel #2] Agreement is terminated for any reason;
Your failure to procure the Shared Facilities or construct comparable facilities and amenities to meet Standards is deemed to be a default that may result in the termination of the Agreement.
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- You acknowledge and agree that any Default under the [Hotel #2] Agreement shall constitute a simultaneous Default of the Agreement, and termination of the [Hotel #2] Agreement pursuant to such Default shall constitute a valid basis for termination of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the termination of either the Embassy Suites By Hilton agreement or the agreement for a shared-facility hotel can have significant consequences for the franchisee. Specifically, if the franchise agreement or the agreement with the other hotel sharing facilities is terminated for any reason, Embassy Suites By Hilton reserves the right to withdraw consent for the shared facilities arrangement.
If Embassy Suites By Hilton withdraws consent, the franchisee is then obligated to either procure the shared facilities independently or construct comparable facilities for the exclusive use of the Embassy Suites By Hilton hotel. Failure to meet these requirements is considered a default under the franchise agreement and may lead to the termination of the agreement.
Furthermore, any default under the agreement with the shared-facility hotel constitutes a simultaneous default of the Embassy Suites By Hilton agreement. Consequently, the termination of the shared-facility hotel's agreement provides a valid basis for the termination of the Embassy Suites By Hilton agreement. This interconnectedness underscores the importance of maintaining a strong and compliant relationship with any hotel sharing facilities with the Embassy Suites By Hilton franchise.