What governmental authorization is required to open an Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
pass our initial opening site visit, we may, in our sole business judgment, charge you reasonable fees associated with any additional visits.
- 6.4.3 We shall be entitled 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 the 2025 Embassy Suites By Hilton Franchise Disclosure Document, a franchisee must obtain authorization from the relevant governmental authority to open a hotel in the jurisdiction where it is located, if applicable. Embassy Suites By Hilton is entitled to withhold consent to the opening of the hotel until the franchisee has received this authorization.
In addition to governmental authorization, Embassy Suites By Hilton requires that the franchisee's architect, general contractor, or other certified professional provide a certificate stating that the as-built premises comply with all laws relating to accessibility, accommodations, and facilities for those with disabilities. The franchisee must also comply with all the terms and conditions in the franchise agreement and ensure that their staff has received adequate training and instruction.
Furthermore, the franchisee must provide Embassy Suites By Hilton with at least fifteen days' advance notice that they have complied with all terms and conditions of the agreement and that the hotel is ready to open. Embassy Suites By Hilton will then use reasonable efforts to visit the hotel and conduct investigations to determine whether to authorize the opening. However, Embassy Suites By Hilton will not be liable for delays if they cannot complete their investigation within the fifteen-day period.
Opening the Embassy Suites By Hilton hotel before the authorized opening date constitutes a material breach of the agreement. In such a case, the franchisee will have to pay liquidated damages of $5,000 per day to compensate for the damage caused by the breach. The franchisee will also be responsible for reimbursing Embassy Suites By Hilton for all costs and expenses, including legal fees, incurred in enforcing their rights under the agreement.