Does the indemnification obligation to Embassy Suites By Hilton survive the termination of the Agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Your obligations under this Section 14 will survive expiration or termination of this 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 franchisee's obligations to indemnify the Indemnified Parties will survive the expiration or termination of the Franchise Agreement. This means that even after the agreement ends, the franchisee may still be responsible for covering losses, damages, or expenses incurred by Embassy Suites By Hilton or its related parties due to events that occurred during the franchise term.
The franchisee's indemnification obligations are detailed in Section 14 of the Franchise Agreement. These obligations require the franchisee to protect Embassy Suites By Hilton and its affiliates from various claims and liabilities. The survival of these obligations ensures that Embassy Suites By Hilton can seek recourse from the franchisee for issues arising from the franchisee's operation of the hotel, even after the franchise relationship has ended.
This survival clause is a standard practice in franchising, designed to protect the franchisor from long-term liabilities that may arise from the franchisee's actions or inactions during the term of the agreement. Prospective Embassy Suites By Hilton franchisees should carefully review Section 14 of the Franchise Agreement to fully understand the scope of their indemnification responsibilities and the potential financial implications that could extend beyond the termination of the franchise agreement.