For Embassy Suites, when are additional costs for training replacement General Managers billed to the Customer?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Cost of Training and Training Materials. The cost of the training is shown below. This cost will be invoiced to Customer by HSS or the third party provider HSS may use at the same time as it renders its invoice to Customer for the License Fees. Additional costs for training replacement general managers or other hotel personnel will be invoiced to Customer prior to such training dates. Customer will be responsible for charges incurred for use of Virtual Private Network ("VPN") to access the training hotel. These costs include fees from HSS's current VPN access provider, for up to 5,000 minutes of network access as well as HSS internal costs for configuration services. VPN access will be terminated for each property at the time of hotel opening or live utilization of the Information System.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, additional costs for training replacement general managers or other hotel personnel are invoiced to the customer prior to such training dates. This means that if a franchisee needs to train a new general manager or other staff member, Embassy Suites will send an invoice for the training costs before the training is scheduled to take place.
This policy allows Embassy Suites to ensure payment for the training services. It also means the franchisee needs to budget and plan for these expenses in advance. The franchisee is also responsible for charges incurred for use of Virtual Private Network ("VPN") to access the training hotel. These costs include fees from HSS's current VPN access provider, for up to 5,000 minutes of network access as well as HSS internal costs for configuration services. VPN access will be terminated for each property at the time of hotel opening or live utilization of the Information System.
This is a fairly standard practice in franchising, as franchisors typically require franchisees to cover the costs of training and may bill in advance to manage their own cash flow and ensure commitment from the franchisee. Franchisees should confirm the exact training costs and payment terms with Embassy Suites to avoid any surprises.