Can Embassy Suites require a franchisee to modernize or upgrade the hotel's furniture, fixtures, and equipment?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically require you to 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 the then current standards and specifications specified in the Manual. These standards will benefit the System as a whole. You must make these changes at your sole cost and expense. You must also maintain acceptable product quality ratings at your Hotel and maintain the hotel in accordance with the Standards. We may make limited exceptions from some of those standards based on local conditions or special circumstances, but we are not required to do so.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 75–77)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites has the right to require franchisees to modernize, rehabilitate, and upgrade various aspects of the hotel. This includes furniture, furnishings, fixtures, finishes, equipment, fittings, signs, computer hardware and software, and related equipment and supplies. These upgrades are mandated to meet the standards and specifications outlined in the Manual, which Embassy Suites states will benefit the entire franchise system.
For a prospective Embassy Suites franchisee, this means they must be prepared to invest in periodic upgrades to maintain the hotel's standards. The franchisee is solely responsible for covering all costs associated with these changes. While Embassy Suites may make limited exceptions to these standards based on local conditions or special circumstances, they are not obligated to do so.
This requirement is fairly standard in the franchise industry, as franchisors seek to maintain brand consistency and quality across all locations. Franchisees should factor in these potential future costs when evaluating the financial feasibility of an Embassy Suites franchise. It is important to note that Embassy Suites retains the right to make changes to the system, and franchisees are obligated to comply with these changes.
Embassy Suites also specifies that franchisees must maintain acceptable product quality ratings and keep the hotel in accordance with the brand's standards. This reinforces the importance of ongoing investment and adherence to the franchisor's requirements to ensure the hotel remains competitive and meets guest expectations.