When is the Franchise Application Fee due 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. | ||
| Property Improvement Plan (“PIP”) Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
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 due when the application is submitted. Specifically, the fee for a change of ownership is listed as $200,000. This fee is required to process the application and is a standard practice in franchising to cover the franchisor's administrative costs associated with reviewing and approving the new franchisee.
Embassy Suites requires all prospective franchisees to complete an application to operate a System Hotel. When submitting the application, the Franchise Application Fee must be paid. Once Embassy Suites approves the application, the Franchise Application Fee is generally non-refundable, with a few exceptions.
If an applicant withdraws their application before approval or if Embassy Suites denies the application, Embassy Suites will refund the Franchise Application Fee, less a $7,500 processing fee, which may be waived or reduced at their discretion. Additionally, if the application is for a Change of Ownership and the Change of Ownership does not occur, Embassy Suites will refund the Franchise Application Fee, less the $7,500 processing fee. This policy ensures that Embassy Suites is compensated for the administrative work involved in processing applications, even if they are not ultimately approved or completed.