What are the requirements for supplies that I must adhere to as an Embassy Suites By Hilton franchisee?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
a Guaranty from a third party acceptable to us covering all of your obligations under the Franchise Agreement. A copy of the Guaranty is attached as Exhibit E.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
We do not impose any restrictions as to the customers to whom you may sell goods or services. In general, you must comply with our requirements as to the types and levels of services, amenities and products that must or may be used, promoted or offered at or in connection with the hotel. You must comply with our requirements regarding supplies, including our specifications for all supplies and our policies regarding suppliers from whom you purchase supplies. High standards are the essence of the System we license to you.
You must operate your Hotel 24 hours a day every day, except as we may otherwise permit based on special circumstances. If you operate an eforea spa, you must comply with the minimum hours of operation for the spa that we may specify. You must operate, furnish, maintain and equip your Hotel, and any eforea spa, in a clean, safe and orderly manner and in first-class condition under the provisions of the Franchise Agreement and the Standards, and in compliance with all applicable local, state, and federal laws, customs and regulations, including maintaining and conducting your business using sound business and financial practices. You must adopt, use and comply with the Standards, and keep your Manual current at all times.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 75–77)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, franchisees must adhere to specific requirements regarding supplies. These requirements include following Embassy Suites By Hilton's specifications for all supplies and adhering to their policies regarding approved suppliers. Maintaining high standards in all aspects of the hotel operation is crucial to the system that Embassy Suites By Hilton licenses to its franchisees.
Embassy Suites By Hilton also has the right to require franchisees to modernize, rehabilitate, and upgrade various items, including furniture, fixtures, equipment, computer hardware and software, and other supplies, to meet the system's current standards as specified in the manual. These changes are at the franchisee's sole cost and expense, and are intended to benefit the Embassy Suites By Hilton system as a whole.
Furthermore, Embassy Suites By Hilton may require franchisees to purchase particular models or brands of merchandise for resale from the hotel, either from Embassy Suites By Hilton itself or from a designated source. This control over supplies and merchandise ensures consistency and quality across all franchised locations, which is a common practice in the hotel franchising industry. Prospective franchisees should carefully review the standards manual and discuss supplier requirements with Embassy Suites By Hilton to fully understand these obligations.