Are all fees described in Item 6 for Embassy Suites payable unless otherwise indicated?

According to Embassy Suites' 2025 Franchise Disclosure Document, all fees detailed in Item 6 are payable to Embassy Suites or its affiliates unless explicitly stated otherwise. These fees are generally non-refundable. However, the Monthly Royalty Fees and liquidated damages are exceptions, as these are not subject to change, while all other fees can be modified by Embassy Suites. This means that as a franchisee, you must pay all fees listed in Item 6 unless the FDD or franchise agreement specifies an exception.

This policy has significant implications for prospective Embassy Suites franchisees. It is crucial to carefully review Item 6 to understand all potential fees and their conditions. Franchisees should pay close attention to which fees are subject to change, as these could impact profitability over the term of the franchise agreement. Understanding the specific conditions under which certain fees may be adjusted or refunded, such as those related to the online booking platform for group events, is also essential.

Embassy Suites' ability to modify most fees (excluding Monthly Royalty Fees and liquidated damages) gives them flexibility but also introduces a degree of financial uncertainty for franchisees. While the FDD provides a snapshot of current fees, these are subject to change, potentially affecting the franchisee's financial planning and operational costs. Therefore, franchisees should regularly communicate with Embassy Suites to stay informed about any upcoming fee changes and factor this potential variability into their financial projections.

In the broader context of franchising, it is common for franchisors to reserve the right to modify fees, but transparency is key. Prospective Embassy Suites franchisees should seek clarification on the factors that trigger fee adjustments and the typical frequency and magnitude of these changes. Understanding the franchisor's fee modification policies will help franchisees better manage their financial risks and maintain a healthy relationship with Embassy Suites.