What specific construction activities are required to meet the 'Construction Commencement Date' for an Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Construction Commencement Date" means the date set out in the Addendum, if applicable, by which you must commence construction of the Hotel.
For the Hotel to be considered under construction, you must have begun to pour concrete foundations for the Hotel or otherwise satisfied any site-specific criteria for "under construction" set out in the Addendum.
- "Construction Work" means all necessary action for the development, construction, renovation, furnishing, equipping and implementation of the Plans and Designs for the Hotel.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the 'Construction Commencement Date' is a crucial milestone that dictates when construction must begin. For an Embassy Suites hotel to be considered under construction, the franchisee must have started pouring concrete foundations for the hotel. Alternatively, the franchisee must have satisfied any site-specific criteria for being 'under construction' as detailed in the Addendum to the franchise agreement.
The specific Construction Commencement Date is outlined in the Addendum and can vary. For certain Embassy Suites franchises, the Construction Commencement Date is due sixteen (16) months from the Effective Date. The Effective Date is also set out in the Addendum, marking when the franchise agreement becomes active.
For franchisees undertaking adaptive reuse projects, additional requirements must be met to be considered under construction. These include submitting final plans to Embassy Suites, receiving approval for those plans, submitting a building permit for hotel construction, and substantially completing exterior demolition (if applicable) and interior demolition and construction of new permanent interior walls to Embassy Suites' satisfaction. Meeting the Construction Commencement Date is essential, as failure to do so could result in penalties or termination of the franchise agreement.