What is Embassy Suites' condition for consenting to the Shared Facilities Arrangement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If we withdraw our consent pursuant to this paragraph, to the extent that the Shared Facilities are part of Standards, you shall immediately make arrangements to either procure the Shared Facilities, or to construct comparable facilities and amenities, for the exclusive use of the Hotel. Your failure to procure the Shared Facilities or construct comparable facilities and amenities to meet Standards is deemed to be a default that may result in the termination of the Agreement. If the Shared Facilities are no longer a part of the Hotel, you are responsible for immediately removing any Marks or distinctive System features associated with the Brand from any of the Shared Facilities that are accessible to or visible by Hotel guests, and removing all other indicia that the Hotel had joint possession or use of the Shared Facilities with the [Hotel #2] Hotel.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, if Embassy Suites withdraws its consent to a Shared Facilities Arrangement, the franchisee must take immediate action to ensure the hotel maintains the required standards. Specifically, the franchisee is obligated to either procure the shared facilities for the exclusive use of the hotel or construct comparable facilities and amenities. This ensures that the Embassy Suites hotel continues to meet the brand's standards and provide the expected level of service and amenities to its guests. Failure to comply with these requirements can lead to a default under the Franchise Agreement, potentially resulting in its termination.
Furthermore, if the shared facilities are no longer part of the hotel's offerings, the franchisee is responsible for promptly removing any Embassy Suites branding or distinctive system features from the shared facilities that are accessible or visible to hotel guests. This includes removing any indications that the hotel had joint use of the facilities with another hotel. This measure is crucial to avoid any confusion among guests and to maintain the integrity of the Embassy Suites brand identity.
In the context of transferring ownership, any new franchise agreement or successor agreement must include the provisions outlined in the addendum regarding shared facilities. Refusal to include these restrictions in a successor agreement provides Embassy Suites with a valid reason to deny the agreement. Similarly, a proposed transferee's refusal to accept these restrictions in a new franchise agreement can lead to Embassy Suites denying consent to the change of ownership. These stipulations ensure that the standards and obligations related to shared facilities are consistently upheld, regardless of changes in ownership or franchise agreements.