For the efficiency and consistency of distribution programs, can Embassy Suites require that the rates and prices I advertise through certain distribution channels be the same as or better than the rates and prices I advertise through other distribution channels?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We may suggest room rates and pricing policies to the extent allowed by law. You will determine the room rates and the prices of the services and amenities that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. For the efficiency and consistency of our distribution programs, and to enable us to operate certain marketing and promotions (such as our Price Match Guarantee), we may also require that the rates and prices you advertise through certain distribution channels be the same as or better than the rates and prices you advertise through other distribution channels as permitted by law.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Embassy Suites may require franchisees to maintain consistent pricing across different distribution channels. For the efficiency and consistency of their distribution programs, and to enable them to operate certain marketing and promotions (such as their Price Match Guarantee), Embassy Suites may require that the rates and prices franchisees advertise through certain distribution channels be the same as or better than the rates and prices advertised through other distribution channels, as permitted by law.
This means that as a franchisee, you might not be able to offer lower prices on some platforms compared to others. This policy aims to ensure that customers always get the best possible deal, no matter where they book. It also helps Embassy Suites maintain a consistent brand image and avoid price wars between different booking channels.
However, franchisees do have some control over their pricing. While Embassy Suites may suggest room rates and pricing policies, franchisees ultimately determine the room rates and the prices of the services and amenities that they offer to guests. The exception to this is that Embassy Suites may establish maximum rates and prices for marketing and promotions if permitted by law. This allows franchisees to adapt to local market conditions while still adhering to the brand's overall pricing strategy.