What authority must an Embassy Suites By Hilton franchisee's Management Company have?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
rogram, unless we waive this requirement. If we determine that you are not qualified to operate the Hotel, at any time, we may require you to retain a Management Company that is acceptable to us to manage the Hotel.
If you wish to hire or are required to hire a Management Company to manage your Hotel, you must obtain our prior written approval. Your Management Company must have the authority to perform all of your obligations under the Franchise Agreement, including all indemnity and insurance obligations. After we approve the Management Company, we can require the general manager and other personnel, such as the director of sales, to attend training programs that pertain to the operational functions of the Hotel related to those roles as are necessary to meet our Brand Standards. If your Management Company resigns or is terminated by you, or otherwise becomes unsuitable or unqualified to operate the Hotel as determined by us, in our sole judgment, you must retain a new Management Company that is acceptable to us within 90 days.
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.
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 the 2025 Embassy Suites By Hilton Franchise Disclosure Document, if a franchisee chooses to hire a Management Company to operate their hotel, that company must have the authority to perform all of the franchisee's obligations under the Franchise Agreement. This includes all indemnity and insurance obligations. Embassy Suites By Hilton must provide prior written approval of the Management Company.
Embassy Suites By Hilton also retains the right to require the general manager and other personnel, such as the director of sales, to attend training programs related to the operational functions of the hotel. These training programs are deemed necessary to meet Embassy Suites By Hilton's Brand Standards. This ensures that the hotel operates in accordance with the brand's established procedures and quality standards, regardless of whether the franchisee or a Management Company is in charge.
If the Management Company resigns, is terminated, or becomes unsuitable or unqualified in Embassy Suites By Hilton's judgment, the franchisee must retain a new Management Company that is acceptable to Embassy Suites By Hilton within 90 days. Furthermore, Embassy Suites By Hilton reserves the right to not approve a Management Company that is a Competitor, or any entity that is the exclusive manager for a Competitor. If the Management Company becomes a Competitor, the franchisee has 90 days to retain a qualified substitute Management Company that Embassy Suites By Hilton approves.