What is the deadline for paying the Monthly Fees to Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2 Calculation and Payment of Fees.
- 8.2.1 The Monthly Fees will be calculated in accordance with the accounting methods of the then-current Uniform System of Accounts for the Lodging Industry, or as specified by us in the Manual.
- 8.2.2 The Monthly Fees will be paid to us at the place and in the manner we designate on or before the fifteenth (15th) day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Fees for such month.
- 8.2.3 We may require you to transmit the Monthly Fees and all other payments required under this Agreement by wire transfer or other form of electronic funds transfer and to provide the standard schedule in electronic form. You must bear all costs of wire transfer or other form of electronic funds transfer or other electronic payment and reporting.
- 8.2.4 In the event of fire or other insured casualty that results in a reduction of Gross Rooms Revenue [INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]**, you will determine and pay us, from the proceeds of any business interruption or other insurance applicable to loss of revenues, an amount equal to the forecasted Monthly Fees, based on the Gross Rooms Revenue
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees must pay their monthly fees on or before the 15th day of each month. These fees are calculated based on the accounting methods outlined in the Uniform System of Accounts for the Lodging Industry or as specified by Embassy Suites in their manual. The fees must be sent to the location and in the manner that Embassy Suites designates.
Embassy Suites may require franchisees to use wire transfers or other forms of electronic funds transfer for payments, and the franchisee is responsible for covering all associated costs. Additionally, franchisees must include a standard schedule that details the computation of the monthly fees.
In the event of a fire or other insured casualty that reduces Gross Rooms Revenue, the franchisee is obligated to pay Embassy Suites the forecasted monthly fees from the proceeds of any business interruption insurance. This amount is based on the Gross Rooms Revenue amounts agreed upon between the franchisee and their insurance company, ensuring that Embassy Suites receives the fees it would have been paid had the casualty not occurred.