What is the name of the U.S. Guaranty of Franchise Agreement for Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS U.S. GUARANTY | OF FRANCHISE AGREEMENT ("Guaranty") is executed as of [Date] | ||
|---|---|---|---|
| ("Effective Date") by, | a[jointly, severally, | ||
| individually and collectively] | ("Guarantor"), in favor of HILTON FRANCHISE HOLDING | LLC, a Delaware | |
| limited liability company | confirm Franchisor entity, as consideration of and as an | ||
| ("Franchisor") | |||
| inducement to Franchisor to execute the franchise agreement with | an Effective Date of [Date] | (referred to | |
| in | collectively, along with all applicable amendments, addenda, riders, supplemental | ||
| this Guaranty | |||
| agreements and assignments, | as the "Franchise | Agreement") between | Franchisor and |
| , | a | ("Franchisee"). Capitalized | |
| terms not otherwise defined in this Guaranty shall have the same meaning as in the Franchise | |||
| Agreement. Guarantor agrees as follows: |
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the name of the U.S. Guaranty of Franchise Agreement is simply "U.S. GUARANTY OF FRANCHISE AGREEMENT". This agreement is executed as of a specific date and involves a Guarantor and Hilton Franchise Holding LLC, referred to as the Franchisor. The agreement serves as consideration and inducement for the Franchisor to execute the franchise agreement with a Franchisee, effective as of a particular date.
The U.S. Guaranty of Franchise Agreement ensures that the obligations of the franchisee are guaranteed by another party, the Guarantor. This provides Hilton Franchise Holding LLC with an additional layer of security, as the Guarantor is responsible for fulfilling the franchisee's obligations if the franchisee fails to do so. This is a common practice in franchising, especially when the franchisee is a newly formed entity or has limited operating history.
The agreement specifies that capitalized terms not defined within the guaranty itself will have the same meaning as defined in the Franchise Agreement. This ensures consistency and clarity in interpreting the obligations and rights of all parties involved. Prospective Embassy Suites By Hilton franchisees should carefully review the U.S. Guaranty of Franchise Agreement, along with the Franchise Agreement, to fully understand the obligations and liabilities of both the franchisee and the guarantor.