Can an Embassy Suites franchisee share the Hotel facilities with any other business?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1.23 not share the business operations and Hotel facilities with any Other Hotel or other business or use them for any purpose other than operating a System Hotel;
5.1.24 provide to us information we reasonably request about any proposed lease or sublease of commercial space, or other concession arrangements, in the Hotel in the ordinary course of business, so that we may review and approve the nature of the proposed business, including the proposed brand and concept, in compliance with our then-current Standards for System Hotels;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, as a general rule, an Embassy Suites franchisee cannot share the hotel's business operations and facilities with another hotel or business. The facilities must be used only for operating a System Hotel.
However, the FDD indicates that franchisees may be able to lease or sublease commercial space or make other concession arrangements within the hotel. Any proposed lease or sublease of commercial space requires the franchisor's approval. Embassy Suites needs to review and approve the nature of the proposed business, including its brand and concept, to ensure it complies with the brand's standards for System Hotels.
This restriction ensures that the Embassy Suites brand maintains its consistency and quality across all locations. While franchisees have some flexibility in utilizing commercial spaces within the hotel, they must adhere to the franchisor's guidelines and obtain approval for any external business operations to protect the brand's integrity.