What does Embassy Suites recommend a prospective franchisee consider before purchasing land?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you purchase the land, you should, at a minimum, consider obtaining an environmental assessment to determine the environmental condition of the land.
Based on this report, additional investigations and tests may be necessary before you make your purchase decision.
Many lenders will require an environmental assessment report before lending purchase money.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, before purchasing land for a new hotel, a prospective franchisee should, at a minimum, consider obtaining an environmental assessment to determine the environmental condition of the land. This assessment can help identify potential environmental issues that could affect the property's value or require remediation.
The environmental assessment report may indicate the need for additional investigations and tests before finalizing the purchase decision. These further steps could involve more detailed site assessments or specific tests to evaluate potential contaminants or hazards.
Furthermore, many lenders will require an environmental assessment report before providing financing for the land purchase. This is a common practice in real estate transactions, as lenders want to ensure that the property is not subject to environmental liabilities that could impact its value or the borrower's ability to repay the loan. Therefore, obtaining an environmental assessment is not only a prudent step for the franchisee but also a practical requirement for securing financing.