Is an Embassy Suites franchisee allowed to engage in tenant-in-common syndication or transfer without express permission?

According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are restricted from engaging in tenant-in-common syndication or transfer without express permission from the franchisor. Specifically, an Embassy Suites franchisee is not allowed to engage in any tenant-in-common syndication or transfer of any tenant-in-common interest in the hotel or the hotel site, unless it is a transfer that is otherwise a Permitted Transfer, without express permission from Embassy Suites. This permission may be withheld for any reason.

If Embassy Suites does permit a franchisee to share their business operation or engage in a tenant-in-common syndication or transfer, the franchisee must comply with any terms that Embassy Suites requires as a condition to their approval. This conditionality provides Embassy Suites with significant control over how a franchise can be structured and financed, ensuring alignment with the brand's overall strategy and protecting its interests.

This restriction is common in franchising, as franchisors typically want to maintain control over the ownership and management of their franchised locations. By requiring express permission for tenant-in-common syndication or transfer, Embassy Suites can carefully vet potential new owners or investors to ensure they meet the brand's standards and have the financial resources to operate the hotel successfully. Prospective franchisees should carefully consider these restrictions and discuss any potential plans for tenant-in-common syndication or transfer with Embassy Suites before signing the Franchise Agreement.