What happens if an Embassy Suites franchisee does not comply with changes made to the System?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
at your Hotel and maintain the hotel in accordance with the Standards. We may make limited exceptions from some of those standards based on local conditions or special circumstances, but we are not required to do so.
There is no limit on our right to make changes to the System. We make changes to the System based on our assessment of the long-term best interests of hotels using the System, considering the interest of the System overall. You must comply with all changes we adopt. We may require that you purchase particular models or brands of merchandise for resale to be sold from the hotel from us or from a source we designate.
You must participate in and use the required Reservation Service, including any additions, enhancements, supplements or variants which we or our affiliates develop or adopt. You must honor and give first priority on available rooms to all confirmed reservations referred to your Hotel through the Reservation Service. The Reservation Service is the only reservation service or system you may use for outgoing reservations referred by or from your Hotel to other hotels or other reservation services we or our affiliates designate.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 75–77)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites has the right to make changes to the System as it sees fit, based on its assessment of the long-term best interests of hotels using the System. These changes are made considering the interest of the System overall. As an Embassy Suites franchisee, you must comply with all changes that Embassy Suites adopts. This includes changes to products, services, amenities, standards, and specifications detailed in the Manual.
Embassy Suites may periodically require franchisees to modernize, rehabilitate, and/or upgrade their Hotel's furniture, furnishings, fixtures, finishes, equipment, fittings, signs, computer hardware and software and related equipment, supplies and other items to meet the then current standards and specifications specified in the Manual. Franchisees are responsible for making these changes at their sole cost and expense. While Embassy Suites may make limited exceptions from some of those standards based on local conditions or special circumstances, they are not required to do so.
This requirement to comply with changes is a standard practice in franchising, as franchisors need to maintain consistency and quality across all locations to protect the brand. However, it also means that franchisees must be prepared to invest in upgrades and changes as required by Embassy Suites, which can impact their profitability. Prospective franchisees should inquire about the frequency and cost of these required changes to better understand the financial implications of operating an Embassy Suites franchise.