On what date can Embassy Suites increase or decrease the Maintenance Fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Maintenance Fees are subject to increase or decrease by HSS, in its sole discretion, on January 1 of each year during the term of this Agreement or any extension thereof; however, HSS will not charge Customer any Maintenance Fees that are greater than the Maintenance Fees charged to any similarly situated Customer (based upon factors determined by HSS in its sole judgment) utilizing equipment substantially similar to the Authorized Equipment and pursuant to an agreement which has terms and conditions substantially similar to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, HSS has the discretion to adjust the Maintenance Fees on January 1 of each year during the agreement term or any extensions. However, Embassy Suites will not charge a customer any Maintenance Fees greater than what is charged to similarly situated customers utilizing substantially similar equipment and operating under substantially similar agreements. This ensures some level of fairness and parity in fee structures among franchisees.
This policy means that as an Embassy Suites franchisee, you can anticipate a potential change in your maintenance fees annually. While the fees can fluctuate, the FDD states that these changes will be benchmarked against what other franchisees with similar setups are paying. This provides a degree of protection against arbitrary or excessive fee increases.
It is important for prospective franchisees to understand the factors HSS uses to determine 'similarly situated customers' and 'substantially similar equipment' to fully grasp how the maintenance fees might evolve over time. This information can help in forecasting operating costs and assessing the overall financial viability of the franchise. Franchisees should also inquire about the historical trends in maintenance fee adjustments to better anticipate future changes.