For an Embassy Suites franchise, what is the deadline for providing a qualified and experienced Management Company, if applicable?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e number of approved Guest Rooms in the Addendum without our prior consent. If you wish to add additional Guest Rooms to the Hotel after the Opening Date, you must submit an application to obtain our consent, pay our then-current Room Addition Fee, and execute an amendment to this Agreement in the form required by us. As a condition to our granting approval of your application, we may require you to modernize, rehabilitate or upgrade the Hotel in
accordance with Subsection 6.6.1 of this Agreement, and to pay us our then-current PIP Fee to prepare a PIP to determine the renovation requirements for the Hotel.
7.0 MANAGEMENT OF THE HOTEL
- 7.1 You are solely responsible for the management of the Hotel's business, including (but not limited to) staffing the Hotel so that it can operate in accordance with the Standards. You will provide qualified and experienced management ("Management Company") [IF APPLICABLE: at least six (6) months before the Opening Date**]**. Your Management Company must be approved by us in writing. We have the right to communicate directly with the Management Company and managers at the Hotel regarding the Hotel's operations and compliance with the Standards and/or this Agreement. We may rely on the communications of such managers or Management Company as being on your behalf.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee chooses to use a Management Company, they must provide a qualified and experienced Management Company to Embassy Suites at least six months before the hotel's opening date. The Management Company must be approved by Embassy Suites in writing, and Embassy Suites has the right to communicate directly with the Management Company and managers at the hotel regarding operations and compliance with standards.
This requirement ensures that the hotel is properly managed from the outset, meeting Embassy Suites's standards for quality and service. The engagement of a Management Company does not reduce the franchisee's obligations under the Franchise Agreement; the franchisee remains ultimately responsible for the hotel's performance. In case of any conflict between the Franchise Agreement and any agreement with the Management Company, the Franchise Agreement prevails.
If an approved Management Company becomes a Competitor, resigns, is terminated, or becomes unsuitable or unqualified, the franchisee has 90 days to retain a substitute Management Company that is acceptable to Embassy Suites. This provision allows for flexibility in managing the hotel while ensuring that the replacement Management Company meets Embassy Suites's standards. The franchisor retains approval rights over any management company to ensure brand standards are maintained.
Prospective franchisees should carefully consider the implications of using a Management Company, including the costs and the need to obtain Embassy Suites's approval. They should also be prepared to find a replacement Management Company within 90 days if the initial company becomes unsuitable.