Can Embassy Suites require additional expenditures and investments to update and maintain the hotel during the Franchise Agreement term?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement and any term extensions, we may periodically require you to make additional expenditures and investments to update and maintain your Hotel in accordance with the System Standards, to comply with any applicable renovation schedule (including any FRCM renovation), and to remove any deficiencies in your Hotel's operations.
We may periodically require you to maintain, replace, modernize, rehabilitate, and/or upgrade your Hotel's furniture, furnishings, fixtures, finishes, equipment, fittings, signs, computer hardware and software and related equipment, supplies, and other items to meet our then-current Standards. We may utilize specific renovation schedules for this purpose as part of the Standards , which we may modify at any time. These Renovation Schedules may be provided to you under our Fixed Renovation Cycle Management ("FRCM") program or any replacement or other program that we utilize in accordance the Standards in the future. You are required to comply with any renovation schedule (including any FRCM renovation) that applies to your Hotel. You are responsible for the costs of complying with any such renovation schedule (including any FRCM renovation), as well as any other changes that are necessary for your Hotel to remain in compliance with the Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–50)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites can require franchisees to make additional expenditures and investments to update and maintain their hotels during the term of the Franchise Agreement and any extensions. These expenditures are required to keep the hotel in accordance with the System Standards, comply with any renovation schedule, including the Fixed Renovation Cycle Management (FRCM) program, and to correct any operational deficiencies.
Embassy Suites may periodically require franchisees to maintain, replace, modernize, rehabilitate, and/or upgrade various aspects of the hotel, such as furniture, furnishings, fixtures, finishes, equipment, signs, computer hardware and software, and related items to meet the then-current Standards. These standards are detailed in the Embassy Suites standards manual, which is regularly reviewed, modified, and updated to reflect operational requirements, technological advancements, improved manufacturing methods, new materials, and other factors.
The franchisee is responsible for covering the costs associated with complying with any renovation schedule, including FRCM renovations, and any other changes necessary to maintain compliance with Embassy Suites' standards. This ensures that all Embassy Suites hotels maintain a consistent level of quality and service, but it also means that franchisees must be prepared for ongoing investments throughout the term of their agreement.