What are the different situations covered by the Franchise Agreement for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement you sign will provide for new development, conversion, change of ownership, or re-licensing, depending on your situation. These situations are referred to in this Disclosure Document as "New Development," "Conversion," "Change of Ownership," and "Relicensing," respectively. New Development refers to new building construction. Conversion refers to the renovation of an existing building to bring it into compliance with our Brand Standards so that it may operate as a Brand hotel. Change of Ownership refers to the transfer of ownership or control of an existing Brand hotel to a new owner. Re-licensing refers to the grant of a new franchise after the expiration of a prior franchise for the same hotel. Adaptive Reuse is also a category shown on the Franchise Application. It is a form of Conversion.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–15)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the Franchise Agreement covers several distinct situations: new development, conversion, change of ownership, and re-licensing. These scenarios represent the different ways a franchisee might enter into or continue their relationship with the Embassy Suites brand.
New Development refers to the construction of a brand new Embassy Suites hotel. This involves building a hotel from the ground up according to Embassy Suites's standards and specifications. Conversion involves taking an existing building and renovating it to meet the brand's standards, allowing it to operate as an Embassy Suites hotel. This is also referred to as Adaptive Reuse.
Change of Ownership occurs when the ownership or control of an existing Embassy Suites hotel is transferred to a new owner. This ensures that the new owner is bound by the terms of the Franchise Agreement. Re-licensing applies when a prior franchise agreement for an existing Embassy Suites hotel expires, and a new franchise agreement is granted for the same location.
These different situations covered by the Franchise Agreement provide flexibility for prospective Embassy Suites franchisees, whether they are looking to build a new hotel, convert an existing property, take over an existing franchise, or renew their franchise agreement. Understanding these different scenarios is crucial for anyone considering investing in an Embassy Suites franchise.