What happens if the proposed management for an Embassy Suites hotel is not approved by the franchisor?
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' 2025 Franchise Disclosure Document, the franchisor must review and approve or disapprove the proposed management of the hotel. In evaluating the proposed management, Embassy Suites will consider the proposed management organizational structure, prior experience, and performance in managing similar first-class, full-service hotels, along with other relevant factors.
If Embassy Suites does not approve the franchisee's proposed management, the franchisee will be required to hire a professional hotel management company that is satisfactory to Embassy Suites to manage the hotel for at least the first year of operations. This ensures that the hotel is run by experienced professionals who meet the brand's standards, especially during the critical initial phase.
At the end of the first year, Embassy Suites will reevaluate this requirement if the franchisee requests it. This provides an opportunity for the franchisee to demonstrate their ability to manage the hotel effectively and potentially take over the management responsibilities after the initial period. This requirement aims to protect the Embassy Suites brand and ensure consistent quality and service across all franchised locations.