Does Embassy Suites always reduce the Monthly Royalty Fee for multi-unit franchisees?

According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites does not always reduce the Monthly Royalty Fee for multi-unit franchisees. While Embassy Suites may offer a reduced Monthly Royalty Fee to multi-unit franchisees, more experienced franchisees, franchisees with whom they have previously dealt, conversions, or franchisees in unique circumstances, they are not obligated to do so. Embassy Suites may choose not to reduce the Monthly Royalty Fee even if a franchisee meets some or all of these criteria.

This indicates that any potential reduction in the Monthly Royalty Fee is at the discretion of Embassy Suites and is subject to individual circumstances. A prospective franchisee should not assume they will receive a reduced fee, even if they are a multi-unit franchisee or have prior experience. The FDD states that Embassy Suites agreed to modify the Monthly Royalty Fee in 6 instances during 2024, which shows that fee reductions are possible, but not guaranteed.

For a prospective franchisee, this means that negotiating the terms of the Monthly Royalty Fee will be an important part of the franchise agreement process. It would be prudent to discuss the possibility of a reduced fee with Embassy Suites, especially if the franchisee has relevant experience or is planning to open multiple units. Understanding the factors that Embassy Suites considers when deciding to reduce fees can help a franchisee make a stronger case for a reduction. Ultimately, the decision rests with Embassy Suites, and the franchisee should be prepared to pay the standard fee if a reduction is not granted.