For Embassy Suites franchise applicants with complex ownership structures, what supplemental documentation is recommended to be included with the application?

According to Embassy Suites's 2025 Franchise Disclosure Document, if the applicant entity has a complex ownership structure, it is recommended to attach a detailed organizational chart to the franchise application. This chart should provide a complete breakdown of the owners of the applicant entity and any related entity that holds or will hold the fee title to the hotel. If the owners are legal entities, the applicant should include a breakdown of their underlying ownership, specifying the name, description, and percentage of ownership interest of all individuals who own or control these entities. The FDD provides an example form and instructions for detailing the ownership structure of the applicant entity, emphasizing the need for a comprehensive representation of ownership, especially when dealing with complex structures.

This requirement ensures that Embassy Suites has a clear understanding of the ownership and control of each franchise. This transparency is crucial for assessing the suitability of the applicant and maintaining the integrity of the Embassy Suites brand. By requiring a detailed organizational chart, Embassy Suites aims to identify all individuals with a significant ownership stake or control over the franchise, which helps in evaluating potential conflicts of interest, financial stability, and overall management capabilities.

For prospective franchisees, this means that if their ownership structure involves multiple layers of legal entities or numerous individual owners, they should invest time and resources in creating a clear and accurate organizational chart. This chart should not only identify the names of the entities and individuals involved but also specify their respective ownership percentages and roles within the organization. Failure to provide a comprehensive organizational chart may result in delays in the application process or even rejection of the application, as Embassy Suites needs this information to conduct its due diligence effectively.