How will the Franchisor determine whether to approve the new Management for an Embassy Suites franchise?

According to the 2025 Embassy Suites Franchise Disclosure Document, any changes to the management company for a hotel made by a lender or receiver before an Assumption (of franchise rights) are subject to Embassy Suites's prior written approval. In determining whether to approve the new management, Embassy Suites will use its business judgment.

This means that if a lender or receiver takes over the hotel before the franchise rights are officially transferred (an Assumption), they can't just install any management company they want. Embassy Suites retains the right to approve the new management team. This protects Embassy Suites's brand standards and operational consistency.

The FDD specifies that Embassy Suites will use its "business judgment" in making this decision, but it does not provide specific criteria or factors that will be considered. It is important for prospective franchisees to understand that Embassy Suites has broad discretion in this area. A prospective franchisee should ask Embassy Suites for more details on the specific factors they consider when evaluating a new management company. Understanding these factors can help a franchisee choose a management company that is more likely to be approved by Embassy Suites, or to understand the risks involved in using a particular management company before an Assumption takes place.