If an Embassy Suites franchisee increases the proposed number of rooms/suites after the Franchise Application is approved, what additional obligation is triggered?

According to Embassy Suites' 2025 Franchise Disclosure Document, if a franchisee increases the proposed number of rooms or suites after the Franchise Application has been approved but before the hotel opens under the Embassy Suites brand, they must obtain approval from Embassy Suites and pay any additional Franchise Application Fee owed. This fee will be calculated as if those additional rooms or suites were included in the original Franchise Application.

This means that the initial Franchise Application Fee, which is $100,000 plus $400 for each additional guest room or suite over 250 for New Development or Conversion projects, could increase. The franchisee needs to factor in this potential additional cost if expansion plans change during the development phase. This ensures that Embassy Suites is compensated for the larger scale of the hotel operation and that the franchise agreement accurately reflects the final size of the property.

For a prospective Embassy Suites franchisee, this condition highlights the importance of accurate initial planning and forecasting of the hotel's size. Any changes to the number of rooms after the application approval can lead to additional fees and require further approval from Embassy Suites, potentially impacting the project's budget and timeline.