Who bears the cost and expense of local and regional advertising for my Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must advertise and promote the hotel and related facilities and services on a local and regional basis as we specify in the Manual, in a first-class, dignified manner, using our identity and graphics standards for all System Hotels, at your cost and expense. You must submit to us samples of all advertising and promotional materials that we have not previously approved (including any materials in digital, electronic, or computerized form, or in any form of media that exists now or is developed in the future) before you produce or distribute them. You may not begin using the materials until we approve them. You must immediately discontinue your use of any advertising or promotional material that we reasonably believe is not in the best interest of your Hotel or the System, even if we previously approved the materials. Any advertising or promotional materials, or sales or marketing concepts, you develop for your Hotel that we approve may be used by other hotels in the System without any compensation to you. (Franchise Agreement, Section 5.1.7).
You may not engage, directly or indirectly, in any cross-marketing or cross-promotion of your Hotel with any other hotel, motel or related business without our prior written consent, except for System Hotels and Network Hotels. You also may not utilize a list of customers (whether acquired before or during the term of your franchise) without our prior approval. The term "System Hotels" means hotels operating under the System using the Brand name and the Standards. The term "Network" means the elements, including know-how, that we or our Affiliates designate to distinguish the hotels, inns, conference centers, timeshare or residential properties and other hospitality-related businesses that Hilton Worldwide and its subsidiaries own, control, license, lease, operate or manage now or in the future. The term "Network Hotel" means any hotel, inn, conference center, timeshare or residential property or other hospitality-related business within the Network.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are responsible for the costs and expenses associated with local and regional advertising and promotion of their hotel. The advertising must be conducted in a dignified manner, adhering to the brand's identity and graphics standards. Franchisees are required to submit all advertising and promotional materials to Embassy Suites for approval before they are used. Embassy Suites retains the right to disapprove any materials it believes are not in the best interest of the hotel or the system, even if previously approved.
This means that as an Embassy Suites franchisee, you will need to budget for local and regional advertising expenses. You will have some control over the specific advertising strategies you employ, but you must ensure that all materials comply with Embassy Suites's standards and receive their approval. This requirement aims to maintain brand consistency across all locations.
It is also important to note that any advertising or promotional materials or sales or marketing concepts that you develop and that Embassy Suites approves may be used by other hotels in the system without any compensation to you. Additionally, franchisees are restricted from cross-marketing or cross-promotion with other hotels, motels, or related businesses without prior written consent from Embassy Suites, with exceptions for System Hotels and Network Hotels.