Does the Embassy Suites FDD Item 6 specify the method of payment for other fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We can require you to transmit all payments required under the Franchise Agreement by wire transfer or other form of electronic funds transfer. You must bear all costs of wire transfer or other form of electronic funds transfer. We may reduce the amount of any payment or credit to you by any amount that you owe us, and this includes your and our affiliates. We occasionally reduce the Monthly Royalty Fee for multi-unit or more experienced franchisees, for franchisees with whom we have previously dealt, for Conversions, or for franchisees in other unique circumstances. However, we do not always do so and may choose not to reduce your Monthly Royalty Fee, even if you possess some or all of these characteristics. We agreed to modify the Monthly Royalty Fee in 6 instances during 2024.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Item 6 addresses the methods of payment for fees. Specifically, Embassy Suites can require franchisees to transmit all payments under the Franchise Agreement via wire transfer or other forms of electronic funds transfer. The franchisee is responsible for covering all costs associated with these transfers.
Additionally, Embassy Suites retains the right to reduce any payment or credit owed to the franchisee by any amount the franchisee owes to them or their affiliates. This provision allows Embassy Suites to offset debts, ensuring that outstanding obligations are addressed promptly.
It's important to note that while wire transfers or electronic funds transfers are specified, the FDD does not explicitly prohibit other payment methods. A prospective franchisee should clarify with Embassy Suites whether alternative payment methods are acceptable and under what conditions.