Does Embassy Suites always reduce the Monthly Royalty Fee for franchisees with whom they have previously dealt?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We occasionally reduce the Monthly Royalty Fee for multi-unit or more experienced franchisees, for franchisees with whom we have previously dealt, for Conversions, or for franchisees in other unique circumstances. However, we do not always do so and may choose not to reduce your Monthly Royalty Fee, even if you possess some or all of these characteristics. We agreed to modify the Monthly Royalty Fee in 6 instances during 2024.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Embassy Suites does not always reduce the Monthly Royalty Fee for franchisees with whom they have previously dealt. While Embassy Suites may reduce the Monthly Royalty Fee for multi-unit or more experienced franchisees, for franchisees with whom they have previously dealt, for Conversions, or for franchisees in other unique circumstances, they are not obligated to do so. Embassy Suites may choose not to reduce the Monthly Royalty Fee, even if a franchisee possesses some or all of these characteristics.
During 2024, Embassy Suites agreed to modify the Monthly Royalty Fee in 6 instances. This indicates that while reductions are possible, they are not guaranteed and are determined on a case-by-case basis.
For a prospective franchisee, this means that prior experience with Embassy Suites or other factors do not automatically entitle them to a reduced Monthly Royalty Fee. Franchisees should negotiate the terms of their agreement carefully and not rely on any assumptions about potential fee reductions.