Under what circumstance does the Embassy Suites FDD require a franchisee to disclose the ownership structure of an affiliate fee owner or lessor/sublessor of the hotel or hotel site?

According to Embassy Suites' 2025 Franchise Disclosure Document, if the franchisee's affiliate is the fee title owner, lessor, or sublessor of the hotel or the hotel site, the franchisee must disclose the ownership structure of that affiliate. This requirement is highlighted in Schedule 2 of the franchise agreement, which is specifically designated for outlining the ownership structure of the affiliate fee owner or lessor/sublessor.

This disclosure allows Embassy Suites to understand the complete ownership and control structure associated with the hotel property. It helps them assess potential risks and ensure that all parties involved meet their standards and obligations. The disclosure also aids in maintaining transparency and accountability within the franchise system.

For a prospective Embassy Suites franchisee, this means that if an affiliate entity (an entity controlled by, controlling, or under common control with the franchisee) owns or leases the hotel property, they must provide detailed information about the ownership of that affiliate. This information is typically provided as an attachment to the franchise agreement, ensuring that Embassy Suites has a clear understanding of who ultimately controls the property on which the hotel operates.