When is the Franchise Application Fee due for an Embassy Suites franchise, and to whom is it paid?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| (Note 1) | Application |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the Franchise Application Fee is $100,000. This fee is due when the application is submitted and is to be paid to Embassy Suites (referred to as "Us" in the document).
This upfront fee is a standard practice in franchising and covers Embassy Suites' initial costs of reviewing the application and assessing the potential franchisee. It's important to note that this fee is typically non-refundable, so prospective franchisees should carefully consider their interest and qualifications before applying.
Prospective Embassy Suites franchisees should factor this significant initial cost into their overall investment calculations. They should also clarify with the franchisor whether this fee is fully earned upon payment or if any portion might be refundable under specific circumstances, although the FDD excerpt does not indicate any refunds.