Where can I find the quality assurance fees for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Our quality assurance program has multiple components. Under this program, we conduct periodic inspections of the Hotel and guest satisfaction surveys and audits (including Stay Score assessments) to ensure your Hotel's compliance with PIP requirements, renovation requirements, and overall System Standards. Our quality assurance fees are listed in Item 6. The intent of these fees is to recoup our actual costs as well as damage and losses incurred in connection with harm done to the Brand's reputation and goodwill as a result of quality and service failures at Brand hotels. Accordingly, any amounts collected in excess of our costs will be used to supplement the Monthly Program Fee for the benefit of the System and Network as described below, and will not be retained by us.
Our Service Quality Improvement Program (formerly known as the Quality Improvement Program) is a part of our quality assurance program. Any hotel that fails to meet our minimum Service Quality Standards for more than 6 continuous months may be required to participate in our Service Quality Improvement Program, which consists of: (a) completion of a Service Improvement Plan for your Hotel; (b) you or your management's successful completion of our service improvement process (which may include additional assessments, re-training, consulting and coaching, or other steps administered by us or third-party vendors we designate); and (c) payment of the applicable Service Quality Improvement program fees. We may waive one or more these requirements based on the particular circumstances at individual hotels. We plan to implement these updates to our Service Quality Improvement Program later this year. At that time, we might make certain adjustments to the program components and fees. See Item 6.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the quality assurance fees are listed in Item 6. The purpose of these fees is to cover the actual costs, damages, and losses incurred due to harm to the brand's reputation and goodwill resulting from quality and service failures at Embassy Suites hotels. Any amounts collected exceeding these costs will supplement the Monthly Program Fee for the benefit of the System and Network.
Additionally, the document mentions a Service Quality Improvement Program that hotels may be required to participate in if they fail to meet minimum Service Quality Standards for more than 6 continuous months. This program involves creating a Service Improvement Plan, completing a service improvement process, and paying applicable program fees. The franchisor may adjust the program components and fees later in the year, as detailed in Item 6.
Prospective franchisees should carefully review Item 6 of the FDD to understand the specific amounts and conditions related to both the general quality assurance fees and the Service Quality Improvement Program fees. Understanding these fees is crucial for budgeting and assessing the financial obligations of operating an Embassy Suites franchise.