Can an Embassy Suites franchisee market or sell timeshares at the Hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1.18 not directly or indirectly conduct or permit the marketing or sale of timeshares, vacation ownership, fractional ownership, condominiums or like schemes at, or adjacent to, the Hotel.
This restriction will not prohibit you from directly or indirectly conducting timeshare, vacation ownership, fractional ownership, or condominium sales or marketing at and for any property located adjacent to the Hotel that is owned or leased by you so long as you do not use any of the Marks in such sales or marketing efforts and you do not use the Hotel or its facilities in such sales and marketing efforts or in the business operations of the adjacent property;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, franchisees are restricted from marketing or selling timeshares, vacation ownerships, fractional ownerships, condominiums, or similar schemes directly or indirectly at or adjacent to the hotel. This restriction aims to maintain the brand's focus and avoid conflicts with its core hotel operations.
However, the FDD specifies an exception: franchisees can conduct timeshare, vacation ownership, fractional ownership, or condominium sales and marketing for properties adjacent to the Embassy Suites hotel if they own or lease the adjacent property. This exception comes with strict conditions. The franchisee must not use any of the Embassy Suites trademarks or involve the hotel or its facilities in these sales and marketing efforts or in the business operations of the adjacent property.
This policy ensures that while franchisees have some flexibility to engage in related real estate ventures, they must keep these ventures distinctly separate from the Embassy Suites brand and operations. This protects the brand's reputation and prevents any confusion among customers regarding the services offered at the hotel versus those of the adjacent property.