What does the Franchise Application Fee for an Embassy Suites cover?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
| 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. |
NOTES
- All prospective franchisees must complete an Application to operate a System Hotel. The current form Application is attached as Exhibit F. When you submit the Application to us for processing, you must pay an initial fee ("Franchise Application Fee"). Once we approve your Application, the Franchise Application Fee is non-refundable except as described in this Item 5. You must provide all the information we ask for in your Application. If we approve your Application before you supply all of the information, our approval will be conditioned on receiving the rest of the information within the time we specify. If you fail to provide the rest of the information within the specified time, we may terminate our offer. If we approve your Application subject to certain requirements, we may terminate our offer if you fail to meet those requirements. If we terminate our offer, we will not refund the Franchise Application Fee. If you withdraw your Application before we approve it, or if we deny your Application, we will refund the Franchise Application Fee, without interest, less a $7,500 processing fee, which may be waived or reduced at our discretion.
While the Franchise Application Fee is usually applied uniformly, we may elect to reduce it after considering criteria which may include: incentives for the development of hotels within the System, a hotel's market position, the property size and the number of hotels in the System operated by a franchisee. In limited and unique circumstances, we may waive part of the Franchise Application Fee or negotiate the Franchise Application Fee for franchisees with whom we have previously dealt but we are not obligated to do so, even for franchisees possessing these characteristics. In 2024, franchisees paid Franchise Application Fees of $7,500 to $200,000 for Change of Ownership.
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, all prospective franchisees must complete an application to operate a System Hotel, and they must pay an initial fee called a "Franchise Application Fee" when submitting the application. The Franchise Application Fee is generally non-refundable once Embassy Suites approves the application, with some exceptions. If the applicant withdraws the application before approval or if Embassy Suites denies the application, Embassy Suites will refund the Franchise Application Fee, without interest, less a $7,500 processing fee, which may be waived or reduced at their discretion.
The amount of the Franchise Application Fee varies depending on the type of application. For a new development or conversion, the fee is $100,000, plus $400 for each additional guest room or suite over 250. For a change of ownership, the Franchise Application Fee is $200,000. For re-licensing, the Franchise Application Fee is $100,000. These fees are due with the application.
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, property size, and the number of hotels in the System operated by a franchisee. In limited and unique circumstances, Embassy Suites may waive part of the Franchise Application Fee or negotiate the Franchise Application Fee for franchisees with whom they have previously dealt, but they are not obligated to do so.