Does the Embassy Suites FDD Item 6 specify if there are any financing options for fees?
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 various fees payable to the franchisor or its affiliates. However, the document does not explicitly state whether financing options are available for these fees.
The fees described in Item 6 include Monthly Royalty Fees, Monthly Program Fees, and other charges related to programs like the Service Quality Improvement Program, ResMax, and RMCC. These fees cover a range of services, including reservation systems, marketing programs, quality assurance, and technology. The fees can fluctuate, with the Monthly Program Fee rate potentially increasing by up to 1% of Gross Rooms Revenue over the Franchise Agreement term.
Since the FDD does not provide details on financing options for these fees, prospective Embassy Suites franchisees should directly inquire with the franchisor about potential financing arrangements or other forms of financial assistance that may be available to help cover these costs. This information is crucial for understanding the full financial commitment required to operate an Embassy Suites franchise.