What is the Franchise Application Fee for 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. |
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.
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. If your Application is for a Change of Ownership and the Change of Ownership does not occur, we will refund your Franchise Application Fee, without interest and less a $7,500 processing 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 varies depending on the type of application. For a new development or conversion, the fee is $100,000, plus an additional $400 for each guest room or suite exceeding 250. For a change of ownership, the Franchise Application Fee is $200,000. For re-licensing, the application fee is $100,000. All application fees are due when the application is submitted.
The Franchise Application Fee is generally applied uniformly, but Embassy Suites may elect to reduce it based on certain criteria, including incentives for hotel development within the system, a hotel's market position, property size, and the number of hotels in the system operated by the franchisee. In some cases, Embassy Suites may waive part of the Franchise Application Fee or negotiate the fee for franchisees with whom they have previously dealt. In 2024, franchisees paid Franchise Application Fees ranging from $7,500 to $200,000 for Change of Ownership.
It is important to note that the Franchise Application Fee is generally non-refundable. However, if the applicant withdraws their application before approval, or if Embassy Suites denies the application, the fee will be refunded, less a $7,500 processing fee, which may be waived or reduced at Embassy Suites's discretion. If the application is for a Change of Ownership that does not occur, the Franchise Application Fee will be refunded, less a $7,500 processing fee. Prospective franchisees should carefully consider these conditions before submitting an application and paying the Franchise Application Fee.