If the number of rooms/suites increases after the Embassy Suites Franchise Application is approved, what is required?

According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee increases the proposed number of rooms or suites after the Franchise Application is approved but before the hotel opens under the Embassy Suites brand, the franchisee must obtain approval from Embassy Suites. Additionally, the franchisee is required to pay any additional Franchise Application Fees owed, calculated as if those additional rooms or suites were part of the original Franchise Application.

The initial Franchise Application Fee for a new development or conversion is $100,000, plus $400 for each additional guest room or suite over 250. Therefore, increasing the number of rooms after the initial application will likely result in additional fees owed to Embassy Suites. This policy ensures that Embassy Suites is compensated appropriately for larger properties and can adequately assess the impact of the increased size on the brand and system.

This requirement has significant implications for prospective franchisees. It underscores the importance of accurately forecasting the number of rooms or suites needed at the outset of the project. Underestimating the number of rooms and subsequently increasing it after approval can lead to unexpected costs and delays. Franchisees should conduct thorough market research and feasibility studies to determine the optimal size of their Embassy Suites hotel before submitting their Franchise Application. Failing to do so could result in additional financial burdens and potential complications with the franchise agreement.