What sections of the Embassy Suites By Hilton Franchise Agreement cover the opening of the franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ys be responsible for fulfilling all our duties and obligations under your Franchise Agreement.
Pre-Opening Phase Obligations
After we approve your Application and/or you sign the Franchise Agreement, but before you open your business:
- We will loan to you a copy of our Manual and/or provide you with electronic access to the Manual on the Hilton Intranet resources library. The Manual is confidential and is the property of our affiliate, Hilton International Holding LLC, a Delaware limited liability company ("HIH") (Franchise Agreement, Section 4.6). References to the Manual include the Standards, which include all standards, specifications, requirements, criteria, and policies that have been and are in the future developed and compiled by us for use by you in connection with the design, construction, renovation, refurbishment, appearance, equipping, furnishing, supplying, opening, operating, maintaining, marketing, services, service levels, quality, and quality assurance of System Hotels, including the hotel, and for hotel advertising and accounting, whether in the Manual or the Franchise Agreement or other written communication (Franchise Agreement, Sections 1.0 and 4.6). The Standards do not include any personnel policies or procedures that we may, at our option, make available to you in the Manual or other written communication. You may, in your sole judgment, determine to what extent, if any, any such personnel policies or procedures might apply to the Hotel or Hotel site. The table of contents of the Manual is attached as Exhibit H-1.
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- Before you retain or engage an architect, Interior designer, general contractor and major subcontractors, we will review your selection, and you must obtain our prior written consent (Franchise Agreement, Section 6.1.1).
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- We will review the plans, layouts and specifications, drawings and designs for constructing and furnishing your Hotel, including guest suite areas, and grant or deny approval, which may be conditioned on your architect or other certified professional certifying to us that the Plans comply with all laws related to accessibility, accommodations and facilities for those with disabilities. You may not start construction until you receive our approval. Once you receive our approval, you may not make any changes to the plans without our advance consent (Franchise Agreement, Sections 6.1.2, 6.1.3 and 6.1.4).
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- We will review and approve or disapprove your proposed management of the hotel (Franchise Agreement, Section 7.0). In evaluating the proposed management, we look at the proposed management organizational structure, prior experience and performance in managing similar first-class, full-service hotels, as well as other relevant factors. If we do not approve your proposed management, then we will require you to hire a professional hotel management company satisfactory to us to manage the hotel for at least the first year of operations. At the end of the year, if you request it, we will reevaluate this requirement.
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- We will provide you with the HITS Agreement (which will be countersigned by HSS) before you open your Hotel.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 50–52)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, Item 11 outlines the franchisor's obligations during the pre-opening phase. Specifically, it mentions several sections of the Franchise Agreement that pertain to opening the business. These include Section 4.6, which relates to the Manual and Standards provided to the franchisee, and Sections 6.1.1, 6.1.2, 6.1.3, and 6.1.4, which cover the review and approval of architectural plans and construction. Additionally, Section 7.0 addresses the review and approval of the hotel's proposed management. Section 4.7 pertains to the availability of purchase, lease, or other arrangements for exterior signs, operating equipment, operating supplies, and furnishings. Finally, Section 4.6 is referenced again in relation to the eforea spa Manual, if the franchisee opens a spa with their hotel.
These sections of the Franchise Agreement are crucial for prospective Embassy Suites By Hilton franchisees as they detail the specific requirements and approvals needed from the franchisor before opening. This includes everything from the initial design and construction phases to management approval and access to the Hilton's proprietary computerized business system, OnQ, governed by the HITS Agreement. Understanding these obligations is essential for franchisees to ensure they meet all necessary standards and requirements, which can impact the timeline and costs associated with opening the franchise.
For example, franchisees must obtain the franchisor's written consent before retaining an architect, interior designer, general contractor, and major subcontractors. They also cannot commence construction until the franchisor approves the plans, layouts, and specifications. Furthermore, any changes to the approved plans require advance consent. These stipulations highlight the importance of close collaboration with Embassy Suites By Hilton during the pre-opening phase to avoid potential delays or complications. The franchisor also makes available various purchase, lease, or other arrangements with respect to exterior signs, operating equipment, operating supplies and furnishings, which the franchisee may find beneficial.
Overall, Item 11 of the 2025 Embassy Suites By Hilton FDD provides a roadmap for the pre-opening phase, referencing specific sections within the Franchise Agreement that govern critical aspects of the opening process. Prospective franchisees should carefully review these sections to fully understand their obligations and the franchisor's role in ensuring the successful launch of their Embassy Suites By Hilton hotel.