What are the conditions that would require a new Embassy Suites franchisee to participate in the ResMax program?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ResMax is optional unless you are opening a new hotel or undergoing a Change of Ownership, and: (a) you are a first-time franchise owner; (b) this will be your first franchise under the Brand; or (c) if your management company is new to the Brand. ResMax also may be required in certain circumstances based on hotel performance. The program terms, eligibility, and fees are subject to change.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, participation in the ResMax program is typically optional, but becomes mandatory under specific circumstances for new franchisees. Specifically, if a franchisee is opening a new hotel or undergoing a change of ownership, ResMax participation is required if the franchisee is a first-time franchise owner, if this is their first franchise under the Embassy Suites brand, or if their management company is new to the brand.
In addition to these initial conditions, Embassy Suites may also require participation in the ResMax program based on the hotel's performance. The FDD indicates that the specific terms, eligibility criteria, and associated fees for the ResMax program are subject to change, giving Embassy Suites the flexibility to adjust the program as needed.
Prospective franchisees should carefully consider these conditions and the potential costs associated with the ResMax program, as it could impact their initial investment and ongoing operational expenses. It is important to discuss these requirements with Embassy Suites during the due diligence process to fully understand the circumstances under which participation is mandatory and to assess the potential benefits of the program.