What is a prohibited action for an Embassy Suites franchisee once the hotel is closed due to casualty?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.1 You must immediately inform us if the Hotel is damaged by fire or other casualty or event of Force Majeure. If the damage or repair requires closing the Hotel, you may choose to repair or rebuild the Hotel according to the Standards, provided you: begin reconstruction within six (6) months after closing and reopen the Hotel for continuous business operations as soon as practicable (but in any event no later than eighteen (18) months after the closing of the Hotel) and give us at least thirty (30) days' notice of the projected date of reopening. Once the Hotel is closed, you will not promote the Hotel as a System Hotel or otherwise identify the Hotel using any of the Marks without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if the hotel is damaged by fire, casualty, or event of Force Majeure requiring closure, the franchisee is prohibited from promoting the hotel as a System Hotel or using any of the Marks without prior written consent from Embassy Suites. This restriction is effective once the hotel is closed for repairs or rebuilding. The franchisee must also inform Embassy Suites immediately of any such damage.
This provision ensures that the Embassy Suites brand is not associated with a damaged or non-operational hotel. It protects the brand's reputation and prevents misleading potential customers into thinking the hotel is open and meeting brand standards when it is not.
However, the franchisee has the option to repair or rebuild the hotel according to Embassy Suites' standards. If the franchisee chooses this option, they must begin reconstruction within six months of the closure and reopen for continuous business operations as soon as possible, but no later than eighteen months after closing. The franchisee must also provide Embassy Suites with at least thirty days' notice of the projected reopening date. Failure to meet these timelines could lead to termination of the franchise agreement.