Does the Embassy Suites FDD Item 6 specify who the fees are paid to?

According to the 2025 Embassy Suites Franchise Disclosure Document, Item 6 addresses who the various fees are paid to. It states that unless otherwise indicated, all fees described in Item 6 are payable to Embassy Suites or its affiliates. These fees are generally non-refundable.

This means that as a franchisee, you will typically be paying these fees directly to the franchisor, Embassy Suites, or to entities affiliated with them. This is a standard practice in franchising, as the franchisor uses these fees to support the brand, provide services, and maintain the overall system.

However, the disclosure also notes an exception: this applies "unless otherwise indicated." This suggests that some fees might be paid to third-party vendors or other entities, depending on the specific fee and the programs or services it covers. Franchisees should carefully review the descriptions of each fee to understand where the money is directed. Franchisees should also note that other than Monthly Royalty Fees and liquidated damages, all fees are subject to change.