For an Embassy Suites By Hilton franchise, what is the relationship between the 'Construction Commencement Date' and the Addendum?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Construction Commencement Date" means the date set out in the Addendum, if applicable, by which you must commence construction of the Hotel.
For the Hotel to be considered under construction, you must have begun to pour concrete foundations for the Hotel or otherwise satisfied any site-specific criteria for "under construction" set out in the Addendum.
"Construction Work Completion Date" means the date set out in the Addendum, if applicable, by which you must complete construction of the Hotel.
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.
6.3.2 The Hotel Work must be completed, and the Hotel must be furnished, equipped, and otherwise made ready to open in accordance with the terms of this Agreement no later than the Construction Work Completion Date or Renovation Work Completion Date specified in the Addendum or any PIP, as the applicable date may be extended.
6.3.3 [SELECT FOR ND/CV AND PRE-OPENING COO]: Despite your obligation to commence and complete Hotel Work by the agreed deadlines, we agree that the Construction Commencement Date, Renovation Commencement Date, Construction Work Completion Date, or Renovation Work Completion Date specified in the Addendum or any PIP will be automatically extended by thirty (30) days on a rolling basis, unless we provide at least sixty (60) days' notice to you that these automatic extensions of the applicable deadline no longer apply.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Construction Commencement Date, which is the date by which a franchisee must begin construction of the hotel, is specified within the Addendum to the Franchise Agreement. The Addendum is a crucial component of the Franchise Agreement, as it contains specific details relevant to the individual franchise location and agreement terms.
The FDD also states that the franchisee must start the Hotel Work on or before the Construction Commencement Date specified in the Addendum. Evidence that the Construction Work has started must be promptly provided to Embassy Suites By Hilton. Furthermore, the Addendum also specifies the Construction Work Completion Date, which is the deadline for completing the hotel's construction and making it ready to open.
Embassy Suites By Hilton may grant extensions to the Construction Commencement Date or Construction Work Completion Date specified in the Addendum. The document states that these dates may be automatically extended by thirty days on a rolling basis, unless Embassy Suites By Hilton provides at least sixty days' notice that these automatic extensions no longer apply. Any further extensions beyond this require the franchisor's approval. Therefore, prospective franchisees should pay close attention to the Addendum, as it outlines critical deadlines and conditions for commencing and completing hotel construction.