For an Embassy Suites franchise, what is the length of the automatic extension for the Construction Commencement Date, Renovation Commencement Date, Construction Work Completion Date, or Renovation Work Completion Date?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.3.3 [SELECT FOR ND/CV AND PRE-OPENING COO]: Despite your obligation to commence and complete Hotel Work by the agreed deadlines, we agree that the Construction Commencement Date, Renovation Commencement Date, Construction Work Completion Date, or Renovation Work Completion Date specified in the Addendum or any PIP will be automatically extended by thirty (30) days on a rolling basis, unless we provide at least sixty (60) days' notice to you that these automatic extensions of the applicable deadline no longer apply.
You must obtain our approval for any further extension of the applicable deadline after receipt of our notice.
We may, in our sole discretion, grant or deny approval, or condition our approval of your extension request on (a) your payment of our thencurrent extension fee; (b) your prompt submission of a written status of the project, including such information as we might reasonably request; and/or (c) any other conditions we consider appropriate under the circumstances.] [SELECT FOR POST-OPENING COO AND RL: You may request an extension of the Renovation Commencement Date, or the Renovation Work Completion Date specified in the Addendum or any PIP by submitting a request for our approval before the applicable deadline, describing the status of the project and the reason for the requested extension, and paying our then-current extension fee.
We may, in our sole discretion, grant or deny approval, or condition our approval of your extension request on (a) your payment of our then-current extension fee; (b) your prompt submission of a written status of the project, including such information as we might reasonably request; and/or (c) any other conditions we consider appropriate under the circumstances.]
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees may be granted an automatic extension of deadlines related to hotel construction or renovation. Specifically, the Construction Commencement Date, Renovation Commencement Date, Construction Work Completion Date, or Renovation Work Completion Date specified in the Addendum or any PIP (Property Improvement Plan) will be automatically extended by thirty (30) days on a rolling basis. This means that the deadline is pushed back by 30 days, and then another 30 days, and so on.
However, this automatic extension is not indefinite. Embassy Suites retains the right to stop these automatic extensions by providing the franchisee with at least sixty (60) days' notice that the extensions will no longer apply. After receiving such a notice, any further extension requires the franchisor's approval.
Embassy Suites may grant or deny further extensions at its sole discretion. If an extension is granted, it may be conditional upon certain requirements. These conditions could include the franchisee paying an extension fee, submitting a written status report on the project, or meeting any other conditions that Embassy Suites deems appropriate. This clause gives Embassy Suites significant control over the construction and renovation timelines, even with the initial automatic extensions.