What employment-related policies and procedures is an Embassy Suites franchisee solely responsible for overseeing?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees are independent contractors and independent employers and we do not and will not have, retain, or exercise any authority over your employment-related policies or procedures. You are solely responsible for overseeing any and all employment-related policies and procedures for your employees in the operation of your Hotel business.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are independently responsible for all employment-related policies and procedures within their hotel business. Embassy Suites does not exert control over the franchisee's labor or employment matters, including setting terms and conditions of employment. The training that Embassy Suites provides is intended to ensure the hotel operates according to brand standards, but it does not extend to directing or supervising the franchisee's personnel.
This means that as an Embassy Suites franchisee, you have the autonomy to establish and manage your own HR practices. This includes hiring, firing, setting wages, determining benefits, and creating workplace rules. You are considered an independent contractor and employer, and Embassy Suites will not have authority over your employment policies.
This independence carries significant implications. Franchisees must ensure compliance with all applicable labor laws and regulations. They are also responsible for managing employee relations, handling grievances, and mitigating potential employment-related legal risks. While Embassy Suites may offer consultation services and advice in areas such as operations and marketing, the responsibility for all employment-related matters rests solely with the franchisee.