Can Embassy Suites create or modify programs funded by the Monthly Program Fees?
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 the 2025 Embassy Suites 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 pays for programs that benefit the Embassy Suites system and network. These programs include maintaining reservation service systems, directories, and internet sites, as well as advertising, marketing, quality assurance, and technology programs. The fees also cover administrative costs related to these programs.
This means that Embassy Suites franchisees contribute to a central fund that the franchisor manages to support the overall brand. While franchisees are required to pay the Monthly Program Fee, they do not have direct control over how these funds are allocated or which programs are prioritized.
Embassy Suites also retains the right to change the Monthly Program Fee rate at any time, although the rate cannot increase by more than 1% of Gross Rooms Revenue over the term of the Franchise Agreement. Franchisees should be aware that the Monthly Program Fee does not cover participation in optional marketing programs or the costs of operating the hotel in accordance with brand standards.