Is HSS responsible for any costs incurred by an Embassy Suites customer in cooperating with an audit?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer agrees that HSS will not be responsible for any of Customer's costs incurred in cooperating with any audit.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, HSS (presumably Hospitality Solutions Services) will not be responsible for any costs that an Embassy Suites franchisee incurs while cooperating with an audit.
Specifically, the FDD outlines that HSS or its designee can perform audits to verify a franchisee's compliance with their agreement. These audits can include examinations, tests, inspections, and reviews, potentially using third-party services. The franchisee is obligated to cooperate with these audit activities, providing reasonable assistance and access to information, including facility access, employee access, and data records. These audits should not unreasonably interfere with the normal business operations of the Embassy Suites hotel.
This means that if Embassy Suites requires you to spend money to gather documents, allocate employee time, or otherwise facilitate an audit, you will be responsible for those expenses. This is a fairly standard practice in franchising, as the franchisee is responsible for demonstrating compliance with the franchise agreement.