Does Embassy Suites By Hilton need to provide a written and signed approval for it to be effective?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Our approvals and consents will not be effective unless given in writing and signed by one of our duly authorized representatives.
- 16.6.2 You agree not to make a claim for money damages based on any allegation that we have unreasonably withheld or delayed any consent or approval to a proposed act by you under the terms of this Agreement.
You also may not claim damages by way of set-off, counterclaim or defense for our withholding of consent.
Your sole remedy for the claim will be an action or proceeding to enforce the provisions of this Agreement by specific performance or by declaratory judgment.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, any approvals or consents required within the franchise agreement must be provided in writing and signed by a duly authorized representative of Embassy Suites By Hilton to be considered effective. This requirement ensures that all approvals are formally documented and authorized by the appropriate personnel within the Embassy Suites By Hilton organization.
This provision protects both the franchisee and Embassy Suites By Hilton by providing a clear record of approvals and consents. It prevents misunderstandings or disputes that could arise from verbal agreements or informal communications. The franchisee can rely on written and signed approvals as evidence of Embassy Suites By Hilton's consent, while Embassy Suites By Hilton can maintain control over decisions affecting the brand and system standards.
This requirement is a fairly standard practice in franchising, as it ensures clarity and accountability in the franchisor-franchisee relationship. Franchisees should pay close attention to this clause and ensure they obtain written and signed approval for any actions requiring franchisor consent, as outlined in the franchise agreement.
Furthermore, the FDD states that Embassy Suites By Hilton has the right to withhold approval at their option, based on their business judgment and assessment of the long-term interests of the overall system, unless the provision indicates otherwise. Embassy Suites By Hilton may withhold any and all consents or approvals if the franchisee is in default or breach of the agreement.