Does the Embassy Suites FDD Item 6 specify if there are any discounts on fees?

According to Embassy Suites' 2025 Franchise Disclosure Document, Item 6 addresses the possibility of fee discounts. Specifically, Embassy Suites may, on occasion, reduce the Monthly Royalty Fee for multi-unit or more experienced franchisees, for franchisees with whom they have previously dealt, for Conversions, or for franchisees in other unique circumstances. However, the document clearly states that Embassy Suites is not obligated to provide these reductions and may choose not to, even if a franchisee meets some or all of the listed characteristics. In 2024, Embassy Suites modified the Monthly Royalty Fee in 6 instances.

This indicates that while there is a possibility of negotiating a lower Monthly Royalty Fee, it is not guaranteed and depends on various factors such as the franchisee's experience, the number of units they operate, or specific circumstances like converting an existing property to an Embassy Suites hotel. The fact that Embassy Suites modified the Monthly Royalty Fee in 6 instances during 2024 suggests that such negotiations are possible, but not automatic.

For a prospective franchisee, this means that when considering an Embassy Suites franchise, it is worthwhile to inquire about the possibility of a reduced Monthly Royalty Fee, especially if they have relevant experience or are in a unique situation. However, they should also be prepared to pay the standard fee, as Embassy Suites retains the discretion to not offer any discounts. Understanding the factors that might influence Embassy Suites' decision could help a franchisee strengthen their negotiation position.