What is the section number in the Embassy Suites By Hilton Spa Amendment that defines the term?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Terms. Capitalized terms in this Amendment have the meaning set forth in the Franchise Agreement, unless amended pursuant to Section 2 below.
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- Changes to Certain Defined Terms. Section 1 of the Franchise Agreement is amended as follows:
- (a) The following defined terms in Section 1 of the Franchise Agreement are deleted and replaced with the following:
"Hotel" means the property you will operate under this Agreement and includes all structures, facilities, appurtenances, furniture, fixtures, equipment, and entry, exit, parking and other areas located on the Hotel Site we have approved for your business, including an eforea spa, located on any land we approve in the future for additions, signs, parking or other facilities.
"Brand" means with respect to the Hotel, the brand name set forth in the Addendum, and the brand name "eforea" with respect to the spa to be operated hereunder.
(e) The following term is added to the defined terms in Section 1:
"Gross Spa Revenue" means all revenue from services and retail sales of products from the eforea spa, less amounts for spa rebates and overcharges, but does not include any sales or other taxes collected directly from spa customers or any revenue derived from food and beverage sales from the eforea spa.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, Section 1 of the Eforea Spa Amendment to Franchise Agreement defines capitalized terms used within the amendment. These terms have the same meaning as in the original Franchise Agreement, unless specifically amended in Section 2 of the Spa Amendment.
Section 2 of the Spa Amendment specifically changes certain defined terms in Section 1 of the original Franchise Agreement. These changes include replacing the definitions of "Hotel" and "Brand" to include the eforea spa. Additionally, Section 2 adds a definition for "Gross Spa Revenue," clarifying what revenue is included from the spa operations, specifically mentioning services, retail sales, rebates, overcharges, sales taxes, and food and beverage sales.
For a prospective Embassy Suites By Hilton franchisee, this means that the definitions of key terms related to the spa operation are clearly outlined in the Spa Amendment, referencing back to the original Franchise Agreement where applicable. It is important to carefully review both Section 1 and Section 2 of the Spa Amendment in conjunction with the original Franchise Agreement to fully understand the obligations and rights related to operating an eforea spa.