Does Embassy Suites always reduce the Monthly Royalty Fee for franchisees in unique circumstances?

According to Embassy Suites' 2025 Franchise Disclosure Document, Embassy Suites does not always reduce the Monthly Royalty Fee for franchisees, even if they meet certain criteria. 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. However, Embassy Suites retains the discretion to not reduce the Monthly Royalty Fee even if a franchisee possesses some or all of these characteristics.

In 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 made on a case-by-case basis.

For a prospective franchisee, this means that while there may be potential opportunities to negotiate a reduced Monthly Royalty Fee based on experience, number of units, or other factors, it is not something that Embassy Suites is obligated to provide. Franchisees should not rely on receiving a reduced fee and should factor the standard Monthly Royalty Fee into their financial projections. It would be prudent for potential franchisees to discuss the possibility of a reduced Monthly Royalty Fee with Embassy Suites during the franchise application process, understanding that the decision ultimately rests with the franchisor.