Who bears the costs of wire transfers or other electronic funds transfers for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We can require you to transmit all payments required under the Franchise Agreement by wire transfer or other form of electronic funds transfer. You must bear all costs of wire transfer or other form of electronic funds transfer. We may reduce the amount of any payment or credit to you by any amount that you owe us, and this includes your and our affiliates. 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's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with wire transfers or other electronic funds transfers. This means that if Embassy Suites requires a franchisee to make payments via these methods, the franchisee must pay any fees charged by the bank or financial institution for the transaction.
This is a fairly standard practice in franchising, as it ensures that the franchisor receives the full payment amount without having to absorb transaction fees. These costs can vary depending on the bank and the type of transfer, but franchisees should factor these potential expenses into their operating budget.
Embassy Suites also retains the right to deduct any amounts owed to them, or their affiliates, from any payments or credits due to the franchisee. This includes the ability to offset amounts owed by the franchisee against any reductions to the Monthly Royalty Fee that Embassy Suites may occasionally grant under certain circumstances.