Does the Embassy Suites FDD Item 6 specify if there are any audits related to fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
on hotel performance. The program terms, eligibility, and fees are subject to change.
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- RMCC is optional except in the following circumstances. Category 1: If your Hotel is open and has an active PIP, it must participate in our one-time "Foundation Audit." Category 2: If you are a first-time franchise owner, the Hotel is your first Brand Hotel, the Hotel is a new construction Hotel, or you change your General Manager, your Hotel must participate in our monthly service "Intermediate Model." If your Hotel is projected to generate or does generate over $10 million in annual Gross Room Revenue or is located in a dynamic market with a complex mix of business and a need for forecasting support, it must participate in our monthly full service "Premier Model." Brand Performance Guidelines: In addition, if your Hotel fails to achieve minimum performance
guidelines ("Brand Performance Guidelines") at any time during the term, a one-time Audit will be conducted including a consultation with you on the results. If your Hotel still does not meet the Brand Performance Guidelines 6 months after that Audit, it will be required to participate in the applicable Category 2 service model for at least 12 months. RMCC programs and 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 discusses audits related to fees under specific circumstances regarding the Revenue Management Call Center (RMCC). Specifically, if a hotel with an active Property Improvement Plan (PIP) must participate in a one-time "Foundation Audit." Additionally, if a hotel fails to achieve minimum Brand Performance Guidelines, a one-time Audit will be conducted, including a consultation on the results.
If the Embassy Suites hotel still does not meet the Brand Performance Guidelines 6 months after that Audit, it will be required to participate in the applicable Category 2 service model for at least 12 months. These RMCC programs and fees are subject to change, meaning that the costs associated with these audits can vary over time.
These audits and related fees are important for prospective franchisees to understand, as they can impact the overall cost of operating an Embassy Suites franchise. Franchisees should inquire about the specific criteria for Brand Performance Guidelines and the potential costs associated with RMCC programs to fully assess the financial implications.