Can Embassy Suites change the Monthly Program Fee rate?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We may change the Monthly Program Fee rate at any time. The Monthly Program Fee rate will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement. The Monthly Program Fee pays for various programs to benefit the System and/or the Network, including: (i) developing and maintaining the Reservation Service systems and support; (ii) developing and maintaining directories and Internet sites for System Hotels; (iii) advertising, promotion, publicity, public relations, market research, and other marketing programs; (iv) certain quality assurance programs; (v) certain technology programs; and (vi) administrative costs and overhead related to the administration or direction of these projects and programs. We may create or modify any programs and allocate monies derived from Monthly Program Fees to any regions or localities. The Monthly Program Fee does not cover your costs of participating in any optional marketing programs or other programs or services periodically offered by us or our affiliates in which you voluntarily choose to participate. These fees also do not cover the cost of operating the hotel in accordance with the Standards or the Manual.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Embassy Suites has the authority to modify the Monthly Program Fee rate at any time. However, there is a stipulation that the rate cannot exceed the current rate by more than 1% of Gross Rooms Revenue during the term of the Franchise Agreement.
The Monthly Program Fee is allocated to various programs that benefit the Embassy Suites system and network. These programs include maintaining reservation services, developing internet sites, advertising, marketing, quality assurance, technology programs, and covering administrative costs. These fees do not cover the franchisee's costs for optional marketing programs or the costs of operating the hotel according to the brand's standards and manuals.
This policy means that while Embassy Suites can adjust the Monthly Program Fee, the increase is capped. As a prospective franchisee, it is important to understand how these fees are used and to factor in potential increases when projecting operating costs. Franchisees should also be aware that these fees do not cover all marketing or operational expenses, and additional costs may arise for optional programs or compliance with brand standards.