Does Embassy Suites have exclusive day-to-day control of the business and operation of the Hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that: (a) you have exclusive day-to-day control of the business and operation of the Hotel (including hiring your employees and the terms and conditions of their employment); (b) although we provide the Standards, we do not in any way possess or exercise day-to-day control of the business and operation of the Hotel; (c) we do not dictate nor control labor or employment matters for you or your employees; nor do we reserve any right or authority to do so; and (d) we are not responsible for the safety and security of your employees or guests;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees have exclusive day-to-day control over their hotel's business and operations. The agreement specifies that while Embassy Suites provides brand standards, they do not possess or exercise day-to-day control over the hotel's operations, including labor and employment matters. Franchisees are responsible for hiring their employees and setting the terms and conditions of their employment. This arrangement positions the franchisee as an independent contractor with control over their daily affairs.
This independence means that Embassy Suites franchisees have significant autonomy in managing their hotel. They make the decisions about staffing, daily operations, and ensuring the hotel meets the brand's standards. However, franchisees must operate the hotel 24 hours a day and adhere to Embassy Suites' standards for supplies, products, services, and signage. They are also required to comply with training standards for their personnel.
While franchisees maintain operational control, Embassy Suites retains the right to ensure brand consistency and quality. They may require franchisees to purchase specific brands of products or services and can enter into exclusive purchasing arrangements. Franchisees must also participate in marketing programs and honor promotional programs and guest loyalty programs. This balance allows franchisees to manage their hotel independently while maintaining the standards and reputation associated with the Embassy Suites brand.
Prospective franchisees should understand that while they have day-to-day control, they must still adhere to the standards set by Embassy Suites. This includes operational requirements, training, and participation in marketing and loyalty programs. Franchisees are also responsible for managing their employees and ensuring the safety and security of both employees and guests. Understanding these responsibilities is crucial for successfully operating an Embassy Suites franchise.