factual

What happens if an Embassy Suites franchisee's request for a project extension is approved?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

to in the Franchise Agreement or PIP, which is set on a project-by-project basis. If you wish to request an extension of any start date or completion date for your project, you must submit a written request

before that date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly.

However, in New Development or Conversion projects the start date and completion date will be extended by 30 days on a rolling basis automatically without a fee unless we provide at least 60 days' notice to you that these automatic extensions will end. At that point, if you wish to request any further extension, you must submit a written request before the relevant date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly.

Source: Item 5 — INITIAL FEES (FDD pages 22–27)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee's request for a project extension is approved, the franchisee must pay an extension fee. Following the fee payment, Embassy Suites will set new project start and completion dates accordingly. This applies to New Development, Conversion, Re-Licensing, Change of Ownership, or room addition projects.

For New Development or Conversion projects, the start and completion dates are automatically extended by 30 days on a rolling basis without a fee, unless Embassy Suites provides at least 60 days' notice that these automatic extensions will end. After the automatic extensions end, any further extension requests, if approved, will require the payment of an extension fee, and new project dates will be set.

It is important to note that these automatic extensions do not apply to Relicensing, Change of Ownership, or room addition projects. For these types of projects, any extension requires a written request and is subject to Embassy Suites's approval and the payment of an extension fee. This policy ensures that Embassy Suites maintains control over project timelines while providing some flexibility to franchisees facing delays, particularly in New Development and Conversion projects.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.