Can the Embassy Suites development incentive program be modified or terminated?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than the development incentive program described below, we generally do not offer direct or indirect financing for franchisees. We may negotiate these incentives when business circumstances warrant. These programs may be modified, limited, extended or terminated at any time without advance notice or amendment of this Disclosure Document.
Source: Item 10 — FINANCING (FDD pages 52–53)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the development incentive program is subject to change. Embassy Suites may modify, limit, extend, or terminate these incentive programs at any time. This can occur without any advance notice to franchisees or formal amendment to the Franchise Disclosure Document itself.
For a prospective Embassy Suites franchisee, this means that any development incentives offered are not guaranteed and can be altered or withdrawn by Embassy Suites at any point. This introduces an element of uncertainty in the financial planning for a new hotel development or conversion. While incentives can provide valuable financial assistance, franchisees must be prepared for the possibility that these incentives could change or disappear altogether.
This level of franchisor discretion over incentive programs is not uncommon in the franchise industry, as it allows franchisors to respond to changing market conditions and business priorities. However, it underscores the importance of carefully evaluating the terms and conditions of any incentive program and understanding the potential impact of changes or termination on the franchisee's investment.