Is an Embassy Suites franchisee required to provide complimentary accommodations for the quality assurance auditor during inspections?

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to provide complimentary accommodations for the quality assurance auditor during on-site inspections. This requirement applies each time Embassy Suites conducts an on-site quality assurance inspection, evaluation, or reevaluation. It also extends to instances where the auditor is verifying that deficiencies noted in a quality assurance evaluation report or a Performance Improvement Plan (PIP) have been corrected or completed by the required dates.

This stipulation means that franchisees must factor in the cost of providing lodging for the auditor into their operating expenses. While the FDD does not specify the duration or type of accommodations required, it is reasonable to assume that the accommodations should meet a certain standard of comfort and convenience. This cost can vary depending on the location of the Embassy Suites hotel and the prevailing rates for accommodations in that area.

The requirement to provide complimentary accommodations is part of Embassy Suites's broader quality assurance program, which aims to ensure that all franchised locations meet the brand's standards. By covering the auditor's lodging expenses, Embassy Suites ensures that audits can be conducted without placing an additional financial burden on the auditor, potentially ensuring more thorough and frequent inspections. This practice is not uncommon in the franchise industry, as franchisors often implement measures to maintain consistent quality and brand standards across all locations.

Prospective franchisees should consider this requirement when evaluating the overall costs of operating an Embassy Suites franchise. It would be prudent to discuss with existing franchisees or the franchisor to understand the typical duration and frequency of these on-site audits, as well as any specific requirements or expectations regarding the accommodations provided. Understanding these details will help in accurately forecasting operating expenses and assessing the financial viability of the franchise.