Can Embassy Suites create or modify programs funded by the Monthly Program Fee?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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 create or modify programs funded by the Monthly Program Fees and allocate these funds to specific regions or localities. The Monthly Program Fee is used to fund various programs that benefit the Embassy Suites system and network. These programs include maintaining reservation services, developing directories and internet sites, advertising, marketing, quality assurance, and technology programs. The fees also cover administrative costs related to these programs.
This flexibility allows Embassy Suites to adapt its strategies and resource allocation based on market conditions or specific needs within the franchise system. However, the Monthly Program Fee does not cover the costs for franchisees to participate in optional marketing programs or the costs of operating the hotel according to brand standards.
For a prospective Embassy Suites franchisee, this means that the franchisor has the discretion to adjust programs and allocate funds as they see fit, which could impact the services and support available to individual hotels. While this provides Embassy Suites with the agility to respond to changing market dynamics, it also means that franchisees may see shifts in how their Monthly Program Fees are utilized over time.