Who conducts the compliance verification for Embassy Suites on behalf of Microsoft?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Microsoft has the right to verify compliance with these terms and any applicable product use rights, at its expense, during the term of the enrollment and for a period of one year thereafter.
To do so, Microsoft will engage an independent accountant from a nationally recognized public accounting firm, which will be subject to a confidentiality obligation.
Verification will take place upon not fewer than 30 days notice, during normal business hours and in a manner that does not interfere unreasonably with your operations.
As an alternative, Microsoft may require you to accurately complete its self-audit questionnaire relating to the products you use.
If verification or self-audit reveals unlicensed use of products, you must promptly order sufficient licenses to permit all product usage disclosed.
If material unlicensed use is found (license shortage of 5% or more), you must reimburse Microsoft for the costs it has incurred in verification and acquire the necessary additional licenses as single retail licenses within 30 days.
If Microsoft undertakes such verification and does not find material unlicensed use of products, it will not undertake another such verification for at least one year.
Microsoft and its auditors will use the information obtained in compliance verification only to enforce its rights and to determine whether you are in compliance with these terms and the product use rights.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Microsoft has the right to verify compliance with the terms and product use rights of its products used by the franchisee. To conduct this verification, Microsoft will engage an independent accountant from a nationally recognized public accounting firm. This accountant will be subject to a confidentiality obligation to protect the franchisee's sensitive business information.
The verification will occur with at least 30 days' notice, during normal business hours, and in a manner that does not unreasonably interfere with the franchisee's operations. As an alternative to engaging an independent accountant, Microsoft may require the franchisee to complete a self-audit questionnaire related to the Microsoft products they use.
If the verification or self-audit reveals unlicensed use of Microsoft products, the Embassy Suites franchisee must promptly order sufficient licenses to cover all product usage. Furthermore, if the unlicensed use is material, defined as a license shortage of 5% or more, the franchisee must reimburse Microsoft for the costs incurred in the verification process and acquire the necessary additional licenses as single retail licenses within 30 days. If Microsoft undertakes a verification and does not find material unlicensed use, it will not conduct another verification for at least one year.
Microsoft and its auditors are obligated to use the information obtained during the compliance verification solely to enforce its rights and determine compliance with the terms and product use rights. This process ensures that Embassy Suites franchisees are using Microsoft products in accordance with their licensing agreements, while also providing some protection against overly burdensome or frequent audits if compliance is maintained.