Under what circumstances is ResMax required for an Embassy Suites By Hilton franchise?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, ResMax is generally optional, but it becomes mandatory under specific conditions related to new hotels, changes in ownership, and hotel performance. Specifically, ResMax is required if a franchisee is opening a new hotel or undergoing a change of ownership and meets any of the following criteria: they are a first-time franchise owner, this will be their first franchise under the Embassy Suites By Hilton brand, or their management company is new to the brand. These stipulations suggest that Embassy Suites By Hilton aims to provide additional support and guidance to franchisees who are new to the system or the brand, ensuring they have the necessary tools to succeed.

Additionally, ResMax may be required based on the hotel's performance. This implies that if an existing Embassy Suites By Hilton hotel is underperforming, the franchisor may mandate participation in the ResMax program to help improve its operations and financial results. The FDD notes that the program terms, eligibility, and fees are subject to change, indicating that Embassy Suites By Hilton retains the flexibility to adjust the ResMax program as needed to address evolving market conditions or specific franchisee needs.

Prospective franchisees should be aware of these conditions and factor the potential costs of ResMax into their financial projections, especially if they are new to the Embassy Suites By Hilton brand or the franchise industry in general. It is also important to inquire about the specific performance metrics that could trigger a ResMax requirement to understand the potential risks and obligations associated with the franchise agreement. Understanding these requirements upfront can help franchisees prepare for potential interventions and ensure they are aligned with Embassy Suites By Hilton's expectations for brand standards and performance.