What is the Franchise Application Fee for a change of ownership of an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application | $100,000 | With | See Note 1. |
| Fee – Re-licensing | Application. |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Franchise Application Fee for a change of ownership is $200,000. This fee is due with the application.
Embassy Suites requires all prospective franchisees to complete an application to operate a System Hotel. The application form is attached as Exhibit F. Once Embassy Suites approves the application, the Franchise Application Fee is generally non-refundable. However, if the Change of Ownership does not occur, Embassy Suites will refund the Franchise Application Fee, without interest, less a $7,500 processing fee.
Embassy Suites may elect to reduce the Franchise Application Fee after considering criteria such as incentives for hotel development within the System, a hotel's market position, the property size, and the number of hotels in the System operated by a franchisee. In 2024, franchisees paid Franchise Application Fees of $7,500 to $200,000 for Change of Ownership.