According to the 2025 Embassy Suites Franchise Disclosure Document, an Embassy Suites franchisee is not allowed to engage in tenant-in-common syndication of the Hotel or the Hotel Site. This restriction is explicitly stated in the franchise agreement, meaning that franchisees are prohibited from structuring the ownership of the hotel or its location in a way that involves tenant-in-common syndication.

This restriction is in place to ensure that Embassy Suites maintains control over the management and operation of its hotels. Tenant-in-common syndication could potentially complicate decision-making and create conflicts among multiple owners, which could negatively impact the brand's standards and reputation. By prohibiting this type of ownership structure, Embassy Suites aims to streamline operations and maintain consistency across all of its franchised locations.

However, the FDD includes bracketed language in the U.S. Guaranty of Franchise Agreement that is inserted for a site-related guaranty with tenant-in-common (TIC) ownership. This suggests that while franchisees cannot engage in tenant-in-common syndication, there may be instances where a guarantor has a tenant-in-common interest in the property. In such cases, the guarantor is still required to guarantee the franchisee's obligations under the franchise agreement.

Prospective franchisees should carefully consider this restriction and discuss any potential ownership structures with Embassy Suites during the due diligence process. Understanding the implications of this restriction is crucial for franchisees to ensure compliance with the franchise agreement and avoid any potential conflicts or breaches.