Can Embassy Suites require a franchisee to purchase specific models or brands of merchandise for resale?

According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites has the right to mandate that franchisees purchase specific models or brands of merchandise for resale within the hotel. These items can be required to be purchased either directly from Embassy Suites or from a source that Embassy Suites designates. This enables Embassy Suites to maintain consistency and quality across all its franchise locations.

This requirement ensures that the products available for resale at different Embassy Suites locations meet the brand's standards. For a prospective franchisee, this means they may not have the freedom to choose their own suppliers or brands for resale items. Instead, they must adhere to Embassy Suites's directives, which could impact their profit margins depending on the negotiated prices with the designated suppliers.

Embassy Suites also retains broad authority to modify the system, and franchisees are obligated to comply with these changes. This includes modernizing, rehabilitating, or upgrading various aspects of the hotel to meet current standards, such as furniture, fixtures, equipment, and computer systems. These changes are at the franchisee's sole expense, highlighting the importance of budgeting for ongoing upgrades and adhering to Embassy Suites's evolving standards. This also includes maintaining acceptable product quality ratings at the hotel.