What constitutes the 'Opening Date' for an Embassy Suites hotel, as defined in the agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
"Opening Date" means the day on which we authorize you to make available the facilities, guestrooms or services of the Hotel to the general public under the Brand. However, the "Opening Date" as it relates to the eforea spa, shall mean the day on which we authorize you to make available the spa's services to the general public.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the "Opening Date" is defined as the day that Embassy Suites authorizes the franchisee to make the hotel's facilities, guest rooms, or services available to the general public under the Embassy Suites brand. For an eforea spa operating in connection with the hotel, the Opening Date is when Embassy Suites authorizes the spa's services to be available to the public.
Embassy Suites requires written consent before a franchisee can open the hotel. The franchisee must provide at least 15 days' advance notice that the hotel is ready to open and has complied with all agreement terms. Embassy Suites will then conduct investigations to determine whether to authorize the opening. Failure to pass the initial site visit may result in additional fees for subsequent visits.
Embassy Suites is entitled to withhold consent to the hotel's opening until several conditions are met. These include receiving a certificate from the franchisee's architect, general contractor, or another certified professional confirming that the premises comply with all laws related to accessibility for those with disabilities. The franchisee must also comply with all terms and conditions in the franchise agreement and ensure that their staff has received adequate training and instruction as required by Embassy Suites. Additionally, the franchisee must have received authorization to open the hotel from the relevant governmental authority, if applicable, and all fees and charges owed to Embassy Suites or its affiliates must be paid.
Opening the hotel before the authorized Opening Date constitutes a material breach of the franchise agreement. In such cases, the franchisee will have to pay Embassy Suites liquidated damages of $5,000 per day to compensate for the damage caused by the breach. The franchisee is also responsible for reimbursing Embassy Suites for all costs and expenses, including legal fees, incurred in enforcing their rights under the agreement. These liquidated damages do not limit any other remedies that Embassy Suites may pursue at law or in equity.