What is the general term length for a new construction Embassy Suites franchise, as stated in the summary?

According to Embassy Suites's 2025 Franchise Disclosure Document, the typical franchise term length for a new construction hotel is generally until midnight on the last day of the month, 23 years after the effective date of the franchise agreement. For a conversion franchise, the term is generally until midnight on the last day of the month, 10 to 20 years after the opening date.

This means that franchisees investing in new construction can expect a longer initial term compared to those converting an existing property to an Embassy Suites hotel. The 'effective date' for new construction is likely the date the franchise agreement is signed, while the 'opening date' for conversions is when the hotel begins operating as an Embassy Suites.

The difference in term lengths likely reflects the different levels of investment and risk associated with each type of franchise. New construction projects require more upfront capital and time, so a longer term provides more opportunity to recoup those investments. Conversion projects, on the other hand, may involve less capital expenditure, but also may come with existing brand perceptions or physical limitations that affect their long-term potential.

Prospective franchisees should carefully consider whether new construction or conversion aligns better with their investment goals and risk tolerance, keeping in mind the corresponding franchise term lengths. It is also important to note that the term lengths provided are 'general' and may vary based on specific circumstances negotiated with Embassy Suites.