Is an Embassy Suites franchisee required to provide information about the franchisee and its affiliates?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1.25 promptly provide to us all information we reasonably request about you and your Affiliates (including your respective beneficial owners, officers, directors, shareholders, partners or members) and/or the Hotel, title to the property on which the Hotel is constructed and any other property used by the Hotel;
4. Information Requests. Guarantor must deliver to Franchisor: (a) complete and current financial information about Guarantor as Franchisor may reasonably request; and (b) any other information about Guarantor that Franchisor reasonably requests.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, franchisees are required to provide information about themselves and their affiliates. Specifically, Embassy Suites requires franchisees to promptly provide all information that the franchisor reasonably requests about the franchisee, their affiliates, including beneficial owners, officers, directors, shareholders, partners, or members, and/or the hotel, title to the property on which the hotel is constructed, and any other property used by the hotel.
This obligation ensures that Embassy Suites maintains oversight and control over its brand and operations. By requiring franchisees to disclose information about themselves and their affiliates, Embassy Suites can assess the financial stability, business experience, and overall suitability of its franchisees. This helps to protect the brand's reputation and ensure consistent standards across all franchised locations.
Furthermore, this requirement extends to proposed leases or subleases of commercial space within the hotel. Franchisees must provide information about these arrangements so that Embassy Suites can review and approve the nature of the proposed business, including the brand and concept, to ensure compliance with system standards. This provision allows Embassy Suites to maintain control over the types of businesses operating within the hotel premises, which can impact the overall guest experience and brand image.
In addition to franchisees and their affiliates, guarantors are also obligated to provide information to Embassy Suites. Guarantors must deliver complete and current financial information and any other information that Embassy Suites reasonably requests. This requirement is in place to ensure that the guarantor has the financial capacity to meet their obligations under the guaranty agreement, providing further security to Embassy Suites in case of franchisee default.