Under what circumstances can the continuation of Hotel Work for an Embassy Suites franchise be interrupted?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
6.3 Commencement and Completion of the Hotel Work.
- 6.3.1 You will commence the Hotel Work on or before the Construction Commencement Date or Renovation Commencement Date specified in the Addendum or any PIP.
You must promptly provide to us evidence satisfactory to us that the Construction Work or Renovation Work has commenced.
Once commenced, the Hotel Work will continue uninterrupted except to the extent continuation is prevented by events of Force Majeure.
You must give written notice to us specifying the nature and duration of any event of Force Majeure promptly after becoming aware of the event of Force Majeure, and specifying that you have used, and continue to use, reasonable endeavours to mitigate the effects of such event of Force Majeure until such event of Force Majeure ceases to exist.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the continuation of Hotel Work, which includes Construction Work and/or Renovation Work, can be interrupted under specific circumstances. Once commenced, Hotel Work should continue uninterrupted unless prevented by events of Force Majeure.
The franchisee must promptly notify Embassy Suites in writing about the nature and duration of any Force Majeure event, and confirm that they are using reasonable efforts to mitigate the effects of the event until it ceases. This notification is crucial for documenting the reason for the interruption and demonstrating the franchisee's commitment to resuming work as soon as possible.
This clause protects both the franchisee and Embassy Suites by acknowledging that unforeseen events can impact construction or renovation schedules. However, it places the onus on the franchisee to actively manage and communicate these disruptions to maintain transparency and ensure the project stays on track as much as possible. Failure to provide timely notice or demonstrate mitigation efforts could potentially lead to disputes or other repercussions under the franchise agreement.