For an Embassy Suites franchise, what is the definition of 'Management Company' in the context of the franchise agreement?
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 the 2025 Embassy Suites Franchise Disclosure Document, the 'Management Company' refers to the qualified and experienced management that the franchisee is responsible for providing to manage the Hotel's business. The franchisee is solely responsible for the hotel's business management, including staffing the Hotel to operate according to Embassy Suites' standards.
The Management Company must be approved in writing by Embassy Suites, and Embassy Suites has the right to communicate directly with the Management Company and managers at the Hotel regarding the Hotel's operations and compliance with the brand's standards and the franchise agreement. Embassy Suites may rely on the communications from such managers or the Management Company as being on the franchisee's behalf. The Management Company and its employees must have the authority to fulfill all of the franchisee's obligations under the franchise agreement.
The engagement of a Management Company does not reduce the franchisee's obligations under the franchise agreement; in case of any conflict between the franchise agreement and any agreement with the Management Company, the franchise agreement prevails. If the 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 acceptable to Embassy Suites.