What happens if Embassy Suites does not approve the proposed management for a new hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We will review and approve or disapprove your proposed management of the hotel (Franchise Agreement, Section 7.0).
In evaluating the proposed management, we look at the proposed management organizational structure, prior experience and performance in managing similar first-class, full-service hotels, as well as other relevant factors.
If we do not approve your proposed management, then we will require you to hire a professional hotel management company satisfactory to us to manage the hotel for at least the first year of operations.
At the end of the year, if you request it, we will reevaluate this requirement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the brand must review and either approve or disapprove the franchisee's proposed hotel management. In evaluating the proposed management, Embassy Suites will consider the organizational structure, prior experience, and performance managing similar first-class, full-service hotels, along with other relevant factors.
If Embassy Suites does not approve the proposed management, the franchisee is required to hire a professional hotel management company that is satisfactory to Embassy Suites to manage the hotel for a minimum of the first year of operations. This requirement will be reevaluated at the end of the year, if the franchisee requests it.
This stipulation ensures that all Embassy Suites hotels maintain a certain standard of management, especially during the critical first year of operations. For a prospective franchisee, this means they may incur additional costs to hire an approved management company if their initial proposal is rejected. However, it also provides a safety net, ensuring experienced management is in place to establish the hotel's operations and service standards from the outset.