How is the completion date for construction or renovation work determined for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
to in the Franchise Agreement or PIP, which is set on a project-by-project basis. For all projects (including New Development, Conversion, Re-Licensing, Change of Ownership, or room addition project), you must complete the construction or renovation work by the date we have agreed to in the Franchise Agreement or PIP, which is set on a project-by-project basis. If you wish to request an extension of any start date or completion date for your project, you must submit a written request
before that date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly.
However, in New Development or Conversion projects the start date and completion date will be extended by 30 days on a rolling basis automatically without a fee unless we provide at least 60 days' notice to you that these automatic extensions will end. At that point, if you wish to request any further extension, you must submit a written request before the relevant date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly. These automatic extensions will not apply to any Relicensing, Change of Ownership, or room addition projects.
3.
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the completion date for construction or renovation work is determined on a project-by-project basis and is agreed upon in the Franchise Agreement or Property Improvement Plan (PIP). This applies to all projects, including New Development, Conversion, Re-Licensing, Change of Ownership, or room addition projects.
Embassy Suites requires franchisees to adhere to these agreed-upon completion dates. However, the document outlines a process for requesting extensions. Franchisees must submit a written request for an extension before the original completion date. If Embassy Suites approves the request, the franchisee must pay an extension fee, and new project start and completion dates will be set accordingly.
For New Development or Conversion projects, Embassy Suites offers some flexibility with automatic extensions. The start and completion dates will be extended by 30 days on a rolling basis automatically without a fee, unless Embassy Suites provides at least 60 days' notice that these automatic extensions will end. After the automatic extensions end, franchisees must submit a written request for any further extensions before the relevant date occurs and pay the extension fee if approved. These automatic extensions do not apply to Relicensing, Change of Ownership, or room addition projects.
Prospective Embassy Suites franchisees should carefully review the Franchise Agreement and PIP to understand the specific completion dates and extension policies applicable to their project. It is crucial to factor in potential delays and the associated costs of extension fees when planning the project timeline. Understanding these requirements upfront can help manage expectations and avoid potential conflicts with the franchisor.