When is participation in the 'Foundation Audit' required for an Embassy Suites hotel regarding RMCC?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
RMCC is optional except in the following circumstances. Category 1: If your Hotel is open and has an active PIP, it must participate in our one-time "Foundation Audit."
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, participation in the "Foundation Audit" is required under specific circumstances related to the Revenue Management Common Center (RMCC). If an Embassy Suites hotel is already open and has an active Property Improvement Plan (PIP), it must participate in a one-time "Foundation Audit."
This audit is part of the RMCC program, which is generally optional, but becomes mandatory under the stated condition. The purpose of the Foundation Audit is likely to assess the hotel's current revenue management practices and identify areas for improvement, especially in the context of an ongoing PIP. The audit aims to ensure that the hotel is on track to meet brand standards and optimize revenue generation during and after the implementation of the PIP.
For a prospective Embassy Suites franchisee, this means that if they acquire an existing hotel with an active PIP, they should be prepared to undergo this audit. Understanding the requirements and potential costs associated with the RMCC program and the Foundation Audit is crucial for budgeting and operational planning. Franchisees should also inquire about the scope of the audit and the potential impact on their hotel's operations.