What are some of the requirements for the insurance that an Embassy Suites franchisee must maintain?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain the minimum levels and types of insurance specified in the Manual at your expense.
This insurance must be with insurers having minimum ratings we specify; name as additional insureds the parties we specify in the Manual; and carry the endorsements and notice requirements we specify in the Manual.
Insurance premiums vary widely by reason of location, size of hotel and type of coverage purchased and cannot be estimated.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, franchisees are required to maintain specific minimum levels and types of insurance. The exact details of these requirements, including the types and levels, are outlined in the Embassy Suites manual. The franchisee is responsible for covering the costs of these insurance policies.
The insurance must be obtained from insurers that meet minimum rating criteria specified by Embassy Suites. Additionally, the insurance policies must name certain parties, as detailed in the manual, as additional insureds. The policies must also include specific endorsements and adhere to the notice requirements outlined in the manual.
The FDD indicates that the cost of insurance can vary significantly based on factors such as the hotel's location, size, and the type of coverage purchased. Due to these variations, the FDD does not provide an estimated cost for insurance premiums. Prospective franchisees should carefully review the insurance requirements in the manual and obtain quotes from insurance providers to determine the actual cost for their specific situation.