What is the estimated range for Miscellaneous Pre-Opening and Project Management Expenses for an Embassy Suites franchise, and when are these payments due?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
IMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | U |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the estimated cost for Miscellaneous Pre-Opening and Project Management Expenses ranges from $1,080,000 to $1,650,000. These expenses cover additional personnel training, sales, administrative and general expenses, project management, technical services, advertising, security deposits, utility deposits, and opening festivities. These payments are due as incurred and are to be paid to suppliers.
These expenses are a significant part of the initial investment for an Embassy Suites franchise. Prospective franchisees should carefully consider these costs and ensure they have sufficient capital to cover them. The wide range suggests that these costs can vary significantly based on the scale of the project, the location, and the specific suppliers used.
It is important to note that these are estimates, and the actual costs may vary. The FDD advises franchisees to review these figures carefully with a business advisor before making any decision to purchase the franchise. For franchisees converting an existing hotel, these pre-conversion expenses cannot be estimated due to the many variables involved.