Who is ultimately responsible for the management and operation of the Embassy Suites Hotel, regardless of whether a Management Company is engaged?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for the management and operation of your Hotel at all times, regardless of whether you are an individual, corporation, limited liability company, partnership or other entity. Your engagement of a Management Company does not reduce your obligations under the Franchise Agreement. We may communicate directly with your managers and Management
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 74–75)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the franchisee bears the ultimate responsibility for the management and operation of the Embassy Suites hotel. This responsibility remains with the franchisee at all times, irrespective of their business structure, whether they are an individual, corporation, limited liability company, partnership, or other entity.
Even if the franchisee engages a third-party management company to oversee the hotel's day-to-day operations, this does not diminish the franchisee's obligations under the Franchise Agreement. Embassy Suites retains the right to communicate directly with the franchisee's managers and the management company, and it will consider their communications as being made on behalf of the franchisee.
This arrangement places a significant burden on the franchisee, who remains accountable for the hotel's performance and compliance with the Franchise Agreement, even when a management company is in place. Franchisees need to carefully vet and monitor any management company they hire, as any shortcomings or failures on the part of the management company will ultimately reflect on the franchisee's standing with Embassy Suites.