For a conversion Embassy Suites franchise, does the length of the franchise term vary, and if so, what is the range?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise | ||
| Agreement (“FA”), | ||
| Spa Amendment | ||
| and HITS | ||
| Agreement | ||
| a. Length of the franchise term | New Construction: Generally, at midnight on the last day of the month 23 years after the Effective Date. Conversion: Generally, at midnight on the last day of the month 10 to 20 years after the Opening Date. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the franchise term length varies for conversion franchises. The term generally ends at midnight on the last day of the month, ranging from 10 to 20 years after the Opening Date.
This means that the specific length of a conversion franchise agreement is not fixed but is determined within a 10-year span. The exact term length will likely depend on factors such as the condition of the property being converted, the negotiations between the franchisee and Embassy Suites, and potentially the level of investment required to meet brand standards.
For a prospective franchisee, this variability offers some potential for negotiation. Understanding the factors that influence the term length could be advantageous during the franchise agreement process. It would be prudent to discuss term length early in discussions with Embassy Suites to understand their typical criteria and how it might apply to a specific conversion project.