Under what conditions can Embassy Suites suspend obligations to a franchisee, including removing the hotel's listing from directories and advertising?

According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee's hotel is in default, Embassy Suites has the right to suspend its obligations to the franchisee. This includes several key actions that can significantly impact the hotel's visibility and operations. Specifically, Embassy Suites can remove the hotel's listing from any directories it publishes and from any advertising it publishes. Additionally, Embassy Suites may assess applicable non-compliance fees and/or suspend or remove the hotel from the Reservations Service.

This means that if an Embassy Suites franchisee fails to meet the obligations set forth in the Franchise Agreement, the hotel could face serious repercussions. Being removed from directories and advertising would reduce the hotel's exposure to potential customers, likely leading to decreased bookings and revenue. Suspension or removal from the Reservations Service would further limit the hotel's ability to attract guests, as this service connects System Hotels to a global reservations database.

The ability to assess non-compliance fees adds another layer of financial risk for franchisees who do not adhere to the Franchise Agreement. It is crucial for prospective franchisees to understand and comply with all requirements outlined in the agreement to avoid these penalties and potential suspension of services. This also highlights the importance of maintaining standards set forth in the Manual, as compliance directly affects the level of support and benefits Embassy Suites provides.