Does Embassy Suites reserve the right to fulfill its responsibilities through affiliates or third parties?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the following responsibilities to you under this Agreement. We reserve the right to fulfill some or all of these responsibilities through one of our Affiliates or through unrelated third parties, in our sole business judgment. We may require you to make payment for any resulting services or products directly to the provider.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites retains the right to delegate its responsibilities under the franchise agreement to affiliates or unrelated third parties. Specifically, Embassy Suites may choose to have an affiliate or third party handle responsibilities such as training, reservation services, consultation, and marketing.
This means that franchisees may receive services or products from entities other than Embassy Suites itself. In such cases, Embassy Suites may require the franchisee to make payments directly to the service provider. This could impact the franchisee's experience, as they may be dealing with multiple entities instead of just Embassy Suites for various aspects of the franchise operation.
This delegation of responsibilities is common in franchising, allowing franchisors to leverage specialized expertise or resources. However, it's important for prospective Embassy Suites franchisees to understand that the quality and consistency of services may vary depending on whether they are provided directly by Embassy Suites or by a third party. Franchisees should evaluate whether the potential benefits of this arrangement outweigh any potential risks associated with dealing with external providers.