Does the Embassy Suites FDD Item 6 mention any penalties for late payment of fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We may add, remove, or modify our sales and distribution programs at any time. These programs may have individual criteria for participation, as well as policies, terms, or rules that must be met for continued participation. We may require your Hotel to participate in certain programs or combinations of programs. We may also offer optional programs at an additional cost. Some programs may utilize automatic enrollment and if your Hotel does not wish to participate it may be required to opt-out as provided in programs' policies, terms, or rules. Failure to pay fees or commissions when due, or failure to comply with the applicable program policies, terms, and rules may result in the loss of access to certain programs or individual sales and distribution channels.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Item 6 addresses consequences for failing to pay fees when due. Specifically, if a franchisee fails to pay fees or commissions when due, or fails to comply with the applicable program policies, terms, and rules, they may lose access to certain programs or individual sales and distribution channels.
This means that if an Embassy Suites franchisee does not pay their fees on time, they risk losing access to valuable resources that support their hotel's operations. These programs and channels could include marketing initiatives, reservation systems, and other support services that are crucial for attracting guests and maintaining brand standards.
The FDD highlights that Embassy Suites may add, remove, or modify sales and distribution programs at any time, and these programs may have individual criteria for participation. Therefore, it is important for franchisees to understand the specific terms and conditions of each program and ensure timely payment of all associated fees to avoid any disruptions to their hotel's access to these resources. This also means that Embassy Suites franchisees should stay informed about any changes to these programs and their payment requirements to remain compliant and maintain access.