What fees and charges must be paid to Embassy Suites By Hilton or its affiliates before the hotel can open?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
to withhold our consent to the opening of the Hotel until:
- 6.4.3.1 your architect, general contractor or other certified professional provides us with a certificate stating that the as-built premises comply with all Laws relating to accessibility/accommodations/facilities for those with disabilities;
- 6.4.3.2 you have complied with all the terms and conditions in this Agreement;
- 6.4.3.3 your staff has received adequate training and instruction in the manner
we require;
- 6.4.3.4 you have received authorization to open the Hotel from the relevant governmental authority for the jurisdiction in which the Hotel is located, if applicable; and
- 6.4.3.5 all fees and charges you owe to us or our Affiliates have been paid.
- 6.4.4 Opening the Hotel before the Opening Date is a material breach of this Agreement.
- 6.4.4.1 You will pay us Liquidated Damages in the amount of Five Thousand Dollars ($5,000) per day if y
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, all fees and charges owed to Embassy Suites By Hilton or its affiliates must be paid before the hotel is authorized to open. Failure to meet this requirement constitutes a breach of the franchise agreement.
Opening the Embassy Suites By Hilton hotel before the official opening date results in liquidated damages of $5,000 per day until the official opening date. This serves as compensation to Embassy Suites By Hilton for damages caused by the breach. The franchisee is also responsible for reimbursing Embassy Suites By Hilton for all costs and expenses, including legal fees, incurred while enforcing their rights under the agreement.
These liquidated damages do not exclude any other remedies that Embassy Suites By Hilton may pursue through legal or equitable means. The document states that the liquidated damages represent a reasonable estimate of the minimum compensation for damages Embassy Suites By Hilton will incur if the franchisee opens the hotel before the agreed-upon date, which is a material breach of the agreement.