What is the dependency between submitting an application and paying the Franchise Application Fee for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
rticipation in additional programs, | | | | | may be mandatory. |
NOTES
- All prospective franchisees must complete an Application to operate a System Hotel. The current form Application is attached as Exhibit F. When you submit the Application to us for processing, you must pay an initial fee ("Franchise Application Fee"). Once we approve your Application, the Franchise Application Fee is non-refundable except as described in this Item 5. You must provide all the information we ask for in your Application. If we approve your Application before you supply all of the information, our approval will be conditioned on receiving the rest of the information within the time we specify. If you fail to provide the rest of the information within the specified time, we may terminate our offer. If we approve your Application subject to certain requirements, we may terminate our offer if you fail to meet those requirements. If we terminate our offer, we will not refund the Franchise Application Fee. If you withdraw your Application before we approve it, or if we deny your Application, we will refund the Franchise Application Fee, without interest, less a $7,500 processing fee, which may be waived or reduced at our discretion. If your Application is for a Change of Ownership and the Change of Ownership does not occur, we will refund your Franchise Application Fee, without interest and less a $7,500 processing fee. We have occasionally agreed to give full or partial refunds or to credit the non-refundable Franchise Application Fee toward the Franchise Application Fee of another application for the Brand if submitted and approved within 6 months or less but we are not obligated to do so. If you increase the proposed number of rooms/suites after your Franchise Application is approved and before the opening of your Hotel under the Brand, you must obtain our approval and pay any additional Franchise Application Fee owed as
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, a prospective franchisee must pay the Franchise Application Fee when submitting their application to operate a System Hotel. The amount of this fee varies depending on the type of project. For a New Development or Conversion, the fee is $100,000, plus $400 for each additional guest room or suite over 250. For a Change of Ownership, the fee is $200,000. For Re-licensing, the fee is $100,000.
Once Embassy Suites approves the application, the Franchise Application Fee is generally non-refundable, with some exceptions. If the applicant withdraws their application before approval, or if Embassy Suites denies the application, the fee will be refunded, less a $7,500 processing fee, which may be waived or reduced at Embassy Suites' discretion. A refund less the processing fee is also provided if the application is for a Change of Ownership that does not occur.
Embassy Suites may elect to reduce the Franchise Application Fee based on certain criteria, including incentives for hotel development within the System, a hotel's market position, the property size, and the number of hotels in the System operated by the franchisee. In some cases, Embassy Suites may waive part of the Franchise Application Fee or negotiate the fee for franchisees with whom they have previously dealt, although they are not obligated to do so.