Is the Franchise Application Fee for an Embassy Suites franchise refundable after the application is approved?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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. We have occasionally agreed to give full or partial refunds or to credit the non-refundable Franchise Application Fee toward the Franchise Application Fee of another application for the Brand if submitted and approved within 6 months or less but we are not obligated to do so. If you increase the proposed number of rooms/suites after your Franchise Application is approved and before the opening of your Hotel under the Brand, you must obtain our approval and pay any additional Franchise Application Fee owed as
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the Franchise Application Fee is generally non-refundable once the application is approved. However, there are limited exceptions. Specifically, the Franchise Application Fee may be refundable if the application is for a Change of Ownership and the Change of Ownership does not occur. In this case, Embassy Suites will refund the fee, without interest, less a $7,500 processing fee.
Additionally, Embassy Suites states that it has occasionally agreed to give full or partial refunds or to credit the non-refundable Franchise Application Fee toward the Franchise Application Fee of another application for the Brand if submitted and approved within 6 months or less, but they are not obligated to do so. If the number of rooms/suites increases after the Franchise Application is approved but before the hotel opens, the franchisee must obtain approval from Embassy Suites and pay any additional Franchise Application Fee owed.
If a prospective Embassy Suites franchisee withdraws their application before approval or if Embassy Suites denies the application, the Franchise Application Fee will be refunded, without interest, less a $7,500 processing fee, which may be waived or reduced at Embassy Suites' discretion. If Embassy Suites terminates their offer due to the franchisee's failure to provide all required information or meet certain requirements, the Franchise Application Fee will not be refunded.