factual

Must an Embassy Suites franchisee purchase and maintain property management systems?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 5.1.6 purchase and maintain property management, revenue management, in-room entertainment, telecommunications, high-speed internet access, and other computer and technology systems that we designate for the System or any portion of the System based on our assessment of the long-term best interests of System Hotels, considering the interest of the System as a whole;

Source: Item 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to purchase and maintain specific technology systems. These include property management, revenue management, in-room entertainment, telecommunications, and high-speed internet access systems. The specific systems are those that Embassy Suites designates for the brand or any part of it.

Embassy Suites determines these systems based on their assessment of the long-term best interests of all hotels within the system, while also considering the overall interests of the brand. This means that franchisees must comply with the technology standards set by Embassy Suites to ensure consistency and quality across all locations.

This requirement ensures that all Embassy Suites hotels operate with compatible and up-to-date technology, which can impact guest experience, operational efficiency, and revenue management. For a prospective franchisee, this means allocating capital for these systems and budgeting for ongoing maintenance and potential upgrades as mandated by Embassy Suites.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.