Are the remedies provided in the Embassy Suites By Hilton Agreement exclusive or cumulative?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3.4 You agree that our exercise of the right to Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement.
If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement.
You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the franchisor's right to interim remedies does not prevent them from pursuing other available remedies. Specifically, Embassy Suites By Hilton can take actions such as suspending obligations, reservation services, or software, without these actions being considered a termination or waiver of any other rights they possess under the agreement. This means that the remedies available to Embassy Suites By Hilton are cumulative, not exclusive.
This provision is highly significant for prospective franchisees. It means that even if Embassy Suites By Hilton imposes an interim remedy, such as suspending the hotel from the reservation service, they still retain the right to pursue additional legal or contractual remedies for the franchisee's breach. This could include financial penalties, termination of the franchise agreement, or other actions.
The FDD also states that franchisees are not entitled to compensation for any losses incurred due to the exercise or withdrawal of any interim remedy by Embassy Suites By Hilton. This further emphasizes the franchisor's broad rights and the potential financial risks for franchisees who fail to comply with the terms of the franchise agreement. Franchisees should be aware that these interim remedies can be applied without necessarily resolving the underlying breach, and they may face additional consequences.