If the Construction Commencement Date is not met for an Embassy Suites hotel, what are the potential consequences?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.3.3 [SELECT FOR ND/CV AND PRE-OPENING COO]: Despite your obligation to commence and complete Hotel Work by the agreed deadlines, we agree that the Construction Commencement Date, Renovation Commencement Date, Construction Work Completion Date, or Renovation Work Completion Date specified in the Addendum or any PIP will be automatically extended by thirty (30) days on a rolling basis, unless we provide at least sixty (60) days' notice to you that these automatic extensions of the applicable deadline no longer apply.
You must obtain our approval for any further extension of the applicable deadline after receipt of our notice.
We may, in our sole discretion, grant or deny approval, or condition our approval of your extension request on (a) your payment of our thencurrent extension fee; (b) your prompt submission of a written status of the project, including such information as we might reasonably request; and/or (c) any other conditions we consider appropriate under the circumstances.] [SELECT FOR POST-OPENING COO AND RL: You may request an extension of the Renovation Commencement Date, or the Renovation Work Completion Date specified in the Addendum or any PIP by submitting a request for our approval before the applicable deadline, describing the status of the project and the reason for the requested extension, and paying our then-current extension fee.
We may, in our sole discretion, grant or deny approval, or condition our approval of your extension request on (a) your payment of our then-current extension fee; (b) your prompt submission of a written status of the project, including such information as we might reasonably request; and/or (c) any other conditions we consider appropriate under the circumstances.]
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the Construction Commencement Date can be extended under certain conditions. Embassy Suites may grant an automatic 30-day extension on a rolling basis unless they provide at least 60 days' notice that these extensions will no longer apply.
If a franchisee needs a further extension beyond the automatic extensions, they must seek approval from Embassy Suites. Embassy Suites has the sole discretion to either approve or deny the extension request. Approval may be conditional upon certain requirements.
These conditions can include the franchisee paying an extension fee that is current at the time of the request. Embassy Suites may also require the franchisee to submit a written status report of the project, including any information that Embassy Suites reasonably requests. Embassy Suites can impose any other conditions they deem appropriate under the circumstances. Failing to meet the Construction Commencement Date without an approved extension could lead to further repercussions, though the FDD does not specify what those might be.