Where can I find the specific amounts for the monthly fees payable to Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1 Monthly Fees. Beginning on the Opening Date, you will pay to us for each month (or part of a month, including the final month you operate under this Agreement) the Monthly Fees, each of which is set forth in the Addendum.
8.2 Calculation and Payment of Fees.
- 8.2.1 The Monthly Fees will be calculated in accordance with the accounting methods of the then-current Uniform System of Accounts for the Lodging Industry, or as specified by us in the Manual.
- 8.2.2 The Monthly Fees will be paid to us at the place and in the manner we designate on or before the fifteenth (15th) day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Fees for such month.
- 8.2.3 We may require you to transmit the Monthly Fees and all other payments required under this Agreement by wire transfer or other form of electronic funds transfer and to provide the standard schedule in electronic form. You must bear all costs of wire transfer or other form of electronic funds transfer or other electronic payment and reporting.
- 8.2.4 In the event of fire or other insured casualty that results in a reduction of Gross Rooms Revenue [INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]**, you will determine and pay us, from the proceeds of any business interruption or other insurance applicable to loss of revenues, an amount equal to the forecasted Monthly Fees, based on the Gross Rooms Revenue
[INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]** amounts agreed on between you and your insurance company that would have been paid to us in the absence of such casualty.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the specific amounts for monthly fees are detailed in an addendum to the franchise agreement. Item 8.1 of the agreement states that franchisees will pay monthly fees beginning on the opening date of the hotel. The exact amounts for these fees are not listed directly within this section but are instead located in the Addendum.
This means that a prospective Embassy Suites franchisee needs to carefully review the Addendum to the Franchise Agreement to understand the specific monthly fees they will be required to pay. These fees are a critical component of the ongoing costs of operating the franchise, and understanding their calculation and payment terms is essential for financial planning.
Furthermore, the document specifies how these fees are calculated and when they are due. The fees are calculated according to the accounting methods in the Uniform System of Accounts for the Lodging Industry or as specified in the Manual. Payment is due on or before the fifteenth of each month, accompanied by a schedule detailing the fee computation. Embassy Suites may also require electronic transfer of payments, with the franchisee bearing the costs of such transfers. In the event of a casualty that reduces revenue, the franchisee is responsible for paying the forecasted monthly fees from any business interruption insurance proceeds.