Under what circumstances is the ResMax program required for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ResMax is optional unless you are opening a new hotel or undergoing a Change of Ownership, and: (a) you are a first-time franchise owner; (b) this will be your first franchise under the Brand; or (c) if your management company is new to the Brand. ResMax also may be required in certain circumstances based on hotel performance. The program terms, eligibility, and fees are subject to change.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the ResMax program is generally optional, but it becomes mandatory under specific conditions related to new hotels, changes in ownership, and performance issues. Specifically, ResMax is required when opening a new hotel or undergoing a change of ownership if the franchisee is a first-time owner, if it's their first franchise under the Embassy Suites brand, or if their management company is new to the brand.
In addition to the above scenarios, Embassy Suites may also require participation in the ResMax program based on the hotel's performance. The FDD does not elaborate on the specific performance metrics that would trigger this requirement, only stating that ResMax "may be required in certain circumstances based on hotel performance."
Prospective franchisees should be aware that the terms, eligibility, and fees associated with the ResMax program are subject to change, as stated in the FDD. It is crucial for potential franchisees to discuss these requirements and potential costs with Embassy Suites to fully understand the circumstances under which ResMax participation would be mandatory and to factor these costs into their financial projections.