For a New Development Embassy Suites franchise, when must construction begin after application approval?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
es paid Franchise Application Fees of $7,500 to $200,000 for Change of Ownership.
- For a New Development, you must start construction within 16 months after the date we approve your Application. For a Conversion, Re-Licensing, Change of Ownership, or room addition project, you must start the renovation work by the date we have agreed to in the Franchise Agreement or PIP, which is set on a project-by-project basis. For all projects (including New Development, Conversion, Re-Licensing, Change of Ownership, or room addition project), you must complete the construction or renovation work by the date we have agreed to in the Franchise Agreement or PIP, which is set on a project-by-project basis. If you wish to request an extension of any start date or completion date for your project, you must submit a written request
before that date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly.
However, in New Development or Conversion projects the start date and completion date will be extended by 30 days on a rolling basis automatically without a fee unless we provide at least 60 days' notice to you that these automatic extensions will end. At that point, if you wish to request any further extension, you must submit a written request before the relevant date occurs. If we approve your request, you must pay the extension fee and we will set new project start and completion dates accordingly. These automatic extensions will not apply to any Relicensing, Change of Ownership, or room addition projects.
3.
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if you are developing a new Embassy Suites hotel, you must begin construction within 16 months of the date that Embassy Suites approves your application. However, this start date may be extended automatically by 30 days on a rolling basis without a fee.
Embassy Suites can end these automatic extensions by providing you with at least 60 days' notice. If the automatic extensions end and you need more time, you can submit a written request for an extension before the relevant date. If Embassy Suites approves your request, you will need to pay an extension fee, and new project start and completion dates will be set.
This requirement ensures that franchisees proceed with their projects in a timely manner after approval, maintaining the brand's growth and development standards. Franchisees should carefully plan their construction timelines and be aware of the possibility of needing to request extensions, along with the associated fees, if unforeseen delays occur.