Is an Embassy Suites franchisee required to use the Reservation Service?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain minimum performance Standards and scores for quality assurance programs we establish;
5.1.9 honor all nationally recognized credit cards and credit vouchers issued for general credit purposes that we require and enter into all necessary credit card and voucher agreements with the issuers of such cards or vouchers;
5.1.10 participate in and use the Reservation Service, including any additions, enhancements, supplements or variants we develop or adopt, and honor and give first priority on available rooms to all confirmed reservations referred to the Hotel through the Reservation Service.
The only reservation service or system you may use for outgoing reservations referred by or from the Hotel to other Network Hotels will be the Reservation Service or other reservation services we designate;
5.1.11 comply with Laws and, on request, give evidence to us of compliance;
5.1.12 participate in, and promptly pay all fees, commissions and charges associated with, all travel agent commission programs and third-party reservation and distribution services (such as airline reservation systems), all as required by the Standards and in accordance with the terms of these programs, all of which may be modified;
5.1.13 not engage, directly or indirectly, in any cross-marketing or cross-promotion of the Hotel with any Other Hotel or related business, without our prior written consent.
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 participate in and use the brand's Reservation Service. Specifically, franchisees must use any additions, enhancements, supplements, or variants that Embassy Suites develops or adopts for the service. They must also prioritize confirmed reservations referred to the Hotel through the Reservation Service, giving these reservations first priority on available rooms.
In addition to using Embassy Suites's Reservation Service, franchisees are restricted in their choice of reservation systems for outgoing referrals. The FDD states that the only reservation service or system franchisees may use for outgoing reservations referred by or from the Hotel to other Network Hotels will be the Reservation Service or other reservation services Embassy Suites designates. This means franchisees cannot use competing systems to refer guests to other hotels within the Embassy Suites network.
Embassy Suites also provides the Reservation Service to franchisees. The Reservation Service will be furnished to franchisees on the same basis as it is furnished to other System Hotels. The franchisor will also develop and maintain the Reservation Service systems and support. However, if a franchisee is in default of the agreement, Embassy Suites may suspend the Hotel from the Reservation Service and any reservation and/or website services provided through or by them. If the Hotel is suspended from the Reservation Service, Embassy Suites may divert reservations previously made for the Hotel to other System Hotels or Network Hotels.