What is the meaning of 'Franchisor' in the Embassy Suites By Hilton Franchise Agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Agreement is entered between Hilton Franchise Holding LLC ("we," "us," "our" or "Franchisor") and the Franchisee set forth in the Addendum ("you," "your" or "Franchisee"), and is dated as of the Effective Date. We and you may collectively be referred to as the "Parties."
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the term 'Franchisor' in the franchise agreement refers to Hilton Franchise Holding LLC. The document specifies that Hilton Franchise Holding LLC, along with terms like 'we,' 'us,' and 'our,' represents the Franchisor in the agreement. This clarifies the entity granting the franchise to the franchisee. Hilton Franchise Holding LLC is an affiliate of Hilton Worldwide and is authorized to grant licenses for independently owned or leased hotel properties to operate under the Embassy Suites By Hilton brand.
This definition is crucial for prospective franchisees as it clearly identifies the party they are entering into a contractual agreement with. Knowing the exact legal entity responsible for upholding the franchisor's obligations is essential for legal and business clarity. The agreement explicitly states that the franchisee is referred to as 'you' or 'your.'
Understanding these definitions helps to avoid confusion and ensures that both parties are aware of their respective roles and responsibilities under the Franchise Agreement. This clarity is a standard practice in franchising, where precise definitions are necessary to govern the relationship between the franchisor and franchisee.