Does Embassy Suites By Hilton require franchisees to warrant that they are not Sanctioned Persons?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
16.13 Sanctioned Persons and Anti-bribery Representations and Warranties.
16.13.1 You represent, warrant and covenant to us and our Affiliates, on a continuing basis, that:
16.13.1.1 neither you, nor any Person having Control over you or the Hotel, is a Sanctioned Person;
16.13.1.2 you have not and will not obtain, receive, transfer or provide any funds, property, debt, equity, or other financing related to this Agreement and the Hotel or Hotel Site to/from a Sanctioned Person;
16.13.1.3 neither you, nor any Person having Control over you or the Hotel, has been convicted of, pleaded guilty to, or otherwise been adjudged liable for any violation of laws, ordinances, rules or regulations that pertain to bribery or corruption, money laundering, competition, securities or financial fraud, trade sanctions or export controls, human trafficking, sex trade, or forced labor;
16.13.1.4 any funds received or paid in connection with entry into or performance of this Agreement have not been and will not be derived from illegal sources or activities, or commingled with illegal funds, and that you are not engaging in this transaction in furtherance of a criminal act;
16.13.1.5 in preparation for and in entering into this Agreement, neither you, nor any Person having Control over you or the Hotel, has made any Improper Payment or engaged in any acts or transactions otherwise in violation of any applicable Anti-Corruption Laws, and, in connection with this Agreement or the performance of your obligations under this Agreement, neither you nor any Person having Control over you or the Hotel will directly or indirectly make, offer to make, or authorize any Improper Payment or engage in any acts or transactions otherwise in violation of any applicable Anti-Corruption Laws;
16.13.1.6 neither you, nor any Person having Control over you or the Hotel who may be considered a Government Entity or Government Official, improperly uses their status or position to influence official actions or decisions or to secure any improper advantages to or for the benefit of the Hotel or us; and
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, franchisees must represent, warrant, and covenant that neither they nor anyone with control over them or the hotel is a Sanctioned Person. This extends to ensuring that no funds, property, or financing related to the franchise agreement and the hotel are transferred to or received from a Sanctioned Person.
Additionally, franchisees must warrant that they, nor anyone with control over them or the hotel, have not been convicted of or adjudged liable for violations of laws pertaining to bribery, corruption, money laundering, competition, securities or financial fraud, trade sanctions, export controls, human trafficking, sex trade, or forced labor. They must also ensure that any funds used in connection with the franchise agreement are not derived from illegal sources or activities.
Furthermore, franchisees must affirm that they have not made any Improper Payments or violated any applicable Anti-Corruption Laws in preparation for or during the agreement. They must also ensure that no Government Entity or Government Official improperly uses their position to influence decisions for the benefit of the hotel or Embassy Suites By Hilton. These representations and warranties are made on a continuing basis throughout the term of the franchise agreement.