What conditions must be met before Embassy Suites will consent to the opening of a hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
s and conditions of this Agreement and the Hotel is ready to open. We will use reasonable efforts within fifteen (15) days after we receive your notice to visit the Hotel and to conduct other investigations as we deem necessary to determine whether to authorize the opening of the Hotel, but we will not be liable for delays or loss occasioned by our inability to complete our investigation and to make this determination within the fifteen (15) day period. If you fail to pass our initial opening site visit, we may, in our sole business judgment, charge you reasonable fees associated with any additional visits.
- 6.4.3 We shall be entitled to withhold our consent to the opening of the Hotel until:
- 6.4.3.1 your architect, general contractor or other certified professional provides us with a certificate stating that the as-built premises comply with all Laws relating to accessibility/accommodations/facilities for those with disabilities;
- 6.4.3.2 you have complied with all the terms and conditions in this Agreement;
- 6.4.3.3 your staff has received adequate training and instruction in the manner
we require;
- 6.4.3.4 you have received authorization to open the Hotel from the relevant governmental authority for the jurisdiction in which the Hotel is located, if applicable; and
- 6.4.3.5 all fees and charges you owe to us or our Affiliates have been paid.
- 6.4.4 Opening the Hotel before the Opening Date is a material breach of this Agreement.
- 6.4.4.1 You will pay us Liquidated Damages in the amount of Five Thousand Dollars ($5,000) per day if you open the Hotel before the Opening Date to compensate us for the damage caused by such breach. You must also reimburse us for all of our costs and expenses, including legal fees, incurred in enforcing our rights under this Agreement.
- 6.4.4.2 These Liquidated Damages for damage to our Marks shall not limit or exclude any other remedies we may have at law or in equity.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, before Embassy Suites consents to the opening of a hotel, several conditions must be met. First, the franchisee's architect, general contractor, or another certified professional must provide a certificate stating that the premises comply with all laws relating to accessibility for those with disabilities. The franchisee must also comply with all the terms and conditions outlined in the franchise agreement.
In addition, the franchisee's staff must receive adequate training and instruction as required by Embassy Suites. The franchisee must also receive authorization to open the hotel from the relevant governmental authority in the jurisdiction where the hotel is located, if applicable. Finally, all fees and charges owed to Embassy Suites or its affiliates must be paid in full.
Embassy Suites requires at least 15 days advance notice that the franchisee has met all opening conditions. Embassy Suites will then use reasonable efforts to visit the hotel and conduct investigations to determine whether to authorize the opening. However, Embassy Suites is not liable for delays if they cannot complete their investigation within the 15-day period. If the hotel fails the initial opening site visit, Embassy Suites may charge reasonable fees for any additional visits. Opening the hotel before receiving written consent from Embassy Suites or before the designated Opening Date constitutes a material breach of the agreement, potentially incurring liquidated damages of $5,000 per day and reimbursement for all costs and expenses, including legal fees, incurred by Embassy Suites in enforcing their rights.