What factors might Embassy Suites consider when electing to reduce the Franchise Application Fee?

According to Embassy Suites' 2025 Franchise Disclosure Document, the brand may elect to reduce the Franchise Application Fee based on specific criteria. These criteria include incentives for developing hotels within the Embassy Suites system, the hotel's market position, the property size, and the number of hotels in the system operated by the franchisee. This indicates that Embassy Suites may be more willing to negotiate or reduce the fee to encourage growth in strategic areas or to support franchisees who already have a significant presence within the system.

Embassy Suites also retains the discretion to waive part of the Franchise Application Fee or negotiate it for franchisees with whom they have previously dealt, although they are not obligated to do so. This suggests that prior relationship and good standing with the franchisor could be a factor in negotiating the fee. For example, a franchisee looking to expand their existing portfolio of Embassy Suites hotels might find more favorable terms than a new franchisee.

In 2024, the Franchise Application Fees for Change of Ownership ranged from $7,500 to $200,000. This provides a tangible example of the potential variability in these fees, depending on the specifics of the transaction. It is important to note that these reductions or negotiations are not guaranteed and are subject to Embassy Suites' evaluation of the specific circumstances.