Is the Franchise Application Fee for re-licensing an Embassy Suites refundable?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
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. 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 if those additional rooms/suites were part of your original Franchise Application.
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
The following is a list of all initial fees charged by or payable to us or our affiliates. Unless otherwise stated, these are not refundable under any circumstances.
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 is generally non-refundable. However, there are specific circumstances under which a refund, less a processing fee, may be issued.
The FDD specifies that once Embassy Suites approves an application, the Franchise Application Fee is non-refundable, except as described in Item 5. If an applicant 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. This processing fee may be waived or reduced at Embassy Suites's discretion.
For a Change of Ownership application, if the change does not occur, the Franchise Application Fee will be refunded, without interest, less a $7,500 processing fee. Embassy Suites may also, on occasion, agree to provide full or partial refunds or credit the non-refundable Franchise Application Fee toward another application for the brand if submitted and approved within 6 months, but they are not obligated to do so. The FDD does not specifically address the refundability of the Franchise Application Fee for re-licensing; however, it does state that unless otherwise stated, initial fees are not refundable under any circumstances.