What is the deadline for an Embassy Suites franchisee to submit Operational Information for the previous month?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1.1 At our request, you will prepare and deliver to us the Reports containing the Operational Information (and any other information we reasonably require) in the form, manner and time frame we require. At a minimum, by the fifteenth (15th) day of each month, you will submit to us the Operational Information for the previous month, and reflecting the computation of the amounts then due under Section 8, in the form, manner and time frame we require.
- 10.1.2 At our request, you will certify the Reports as accurate in the manner we require. You must permit us to inspect your books and records at all reasonable times.
- 10.2 Maintenance of Records. You will prepare, on a current basis, and preserve for no less than the greater of four (4) years or the time period stated in our record retention requirements, complete and accurate records concerning Gross Rooms Revenue and all financial, operating, marketing and other aspects of the Hotel. You will maintain an accounting system that fully and accurately reflects all financial aspects of the Hotel and its business. These records will include books of account, tax returns, governmental reports, register tapes, daily reports, and complete quarterly and annual financial statements (including profit and loss statements, balance sheets and cash flow statements), and will be prepared in the form, manner and time frame we require.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees must submit Operational Information for the previous month by the 15th day of each month. This report must include the computation of amounts due under Section 8 of the franchise agreement. The report must be delivered in the format, manner, and timeframe that Embassy Suites requires.
Embassy Suites also has the right to request that franchisees certify the reports as accurate. Franchisees must also allow Embassy Suites to inspect their books and records at all reasonable times. These stipulations ensure that Embassy Suites can monitor the financial performance and operational compliance of its franchisees.
Maintaining accurate and timely records is critical for franchisees. They must keep these records for at least four years or as otherwise specified by Embassy Suites. These records include financial statements, tax returns, and daily reports, all maintained in a format that accurately reflects the hotel's financial status. Failure to comply with these reporting requirements can lead to penalties or even termination of the franchise agreement.