Does the Embassy Suites FDD Item 6 specify if fees can change?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise indicated, all fees described in this Item 6 are payable to, and imposed by, us or our affiliates and are non-refundable. Other than the Monthly Royalty Fees and liquidated damages, all fees are subject to change.
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 outlines the various fees that a franchisee may be required to pay. The document specifies that, unless otherwise indicated, all fees described in Item 6 are payable to Embassy Suites or its affiliates and are non-refundable. However, most fees are subject to change, with the exception of Monthly Royalty Fees and liquidated damages.
Specifically, the Monthly Program Fee rate is subject to change, but the rate will not increase by more than 1% of Gross Rooms Revenue over the term of the Franchise Agreement. Additionally, Embassy Suites may make certain adjustments to the Service Quality Improvement Program as program updates are implemented, and the terms and conditions of the online booking platform for group events are subject to change. The ResMax program terms, eligibility, and fees are also subject to change, as are the RMCC programs and fees.
Furthermore, the terms of the Hilton Honors program are subject to change, and pricing is reviewed annually. All program costs associated with the Hilton Honors program are also subject to change. Given the number of fees that can change, it is important that prospective franchisees carefully review Item 6 and discuss these potential changes with Embassy Suites prior to signing the Franchise Agreement.