factual

Is an Embassy Suites franchisee required to participate in and use the required Reservation Service?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You must participate in and use the required Reservation Service, including any additions, enhancements, supplements or variants which we or our affiliates develop or adopt. You must honor and give first priority on available rooms to all confirmed reservations referred to your Hotel through the Reservation Service. The Reservation Service is the only reservation service or system you may use for outgoing reservations referred by or from your Hotel to other hotels or other reservation services we or our affiliates designate.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 75–77)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to participate in and use the brand's Reservation Service. This includes any additions, enhancements, supplements, or variants that Embassy Suites or its affiliates develop or adopt. Franchisees must also prioritize confirmed reservations referred to their hotel through this Reservation Service.

This means that as an Embassy Suites franchisee, you must integrate and utilize the reservation system mandated by the franchisor. This system is the exclusive channel for outgoing reservations referred by your hotel to other hotels or reservation services designated by Embassy Suites or its affiliates. In essence, you cannot use any other reservation system for referrals to other hotels within the Embassy Suites network.

This requirement ensures brand consistency and helps maintain a unified reservation experience for customers. By mandating the use of a specific Reservation Service, Embassy Suites aims to control the quality and efficiency of the reservation process across all its franchised locations. This can benefit franchisees by providing a steady stream of reservation referrals, but it also means they must adhere to the franchisor's technology and standards without deviation.

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.