What items might Embassy Suites periodically require a franchisee to modernize, rehabilitate, or upgrade?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.6.1 We may periodically require you to modernize, rehabilitate and/or upgrade the Hotel's [INSERT FOR EY, PE, RU: Package, fixtures, equipment, furnishings, finishes, furniture, signs, computer hardware and software and related equipment, supplies and other items to meet the then-current Standards. You will make these changes at your sole cost and expense and in the time frame we require.
- 6.6.2 You may not make any significant changes (including major changes in structure, design or décor) in the Hotel. [INSERT FOR EY, PE, RU: As long as they do not change or affect Package requirements, **[m/M]**inor redecoration and minor structural changes that comply with our Standards will not be considered significant.
- 6.6.3 You may not make any change in the number of approved Guest Rooms in the Addendum without our prior consent. If you wish to add additional Guest Rooms to the Hotel after the Opening Date, you must submit an application to obtain our consent, pay our then-current Room Addition Fee, and execute an amendment to this Agreement in the form required by us. As a condition to our granting approval of your application, we may require you to modernize, rehabilitate or upgrade the Hotel in
accordance with Subsection 6.6.1 of this Agreement, and to pay us our then-current PIP Fee to prepare a PIP to determine the renovation requirements for the Hotel.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites may periodically require franchisees to modernize, rehabilitate, and/or upgrade various aspects of the hotel to meet then-current standards. These potential upgrades include the hotel's package, fixtures, equipment, furnishings, finishes, furniture, signs, computer hardware and software, and related equipment and supplies. The franchisee bears the sole cost and expense of these changes and must complete them within the timeframe specified by Embassy Suites.
Embassy Suites also stipulates that franchisees cannot make significant changes to the hotel, including major alterations to its structure, design, or décor. However, minor redecoration and structural changes that comply with Embassy Suites's standards are permissible, provided they do not affect package requirements. This ensures that the hotel maintains a consistent brand image and meets the franchisor's expectations for quality and appearance.
Furthermore, franchisees need prior consent from Embassy Suites to change the number of approved guest rooms. If a franchisee wishes to add rooms after the opening date, they must submit an application, pay the then-current Room Addition Fee, and execute an amendment to the franchise agreement. As a condition of approving the application, Embassy Suites may require the franchisee to modernize, rehabilitate, or upgrade the hotel according to the standards mentioned earlier and pay a PIP (Property Improvement Plan) Fee to determine the specific renovation requirements.