If Embassy Suites requires wire transfers, who is responsible for the costs?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We can require you to transmit all payments required under the Franchise Agreement by wire transfer or other form of electronic funds transfer. You must bear all costs of wire transfer or other form of electronic funds transfer. We may reduce the amount of any payment or credit to you by any amount that you owe us, and this includes your and our affiliates. We occasionally reduce the Monthly Royalty Fee for multi-unit or more experienced franchisees, for franchisees with whom we have previously dealt, for Conversions, or for franchisees in other unique circumstances. However, we do not always do so and may choose not to reduce your Monthly Royalty Fee, even if you possess some or all of these characteristics. We agreed to modify the Monthly Royalty Fee in 6 instances during 2024.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if Embassy Suites requires franchisees to transmit payments via wire transfer or other electronic funds transfer, the franchisee is responsible for covering all associated costs. This includes any fees charged by the bank or financial institution for processing the wire transfer or electronic payment.
This means that as an Embassy Suites franchisee, you should factor in these transaction costs when budgeting for ongoing fees and payments to the franchisor. While the FDD does not specify the exact amount of these costs, they can vary depending on the financial institution and the specific type of transfer used. It is important to consider these potential expenses to accurately project your operating costs.
Embassy Suites also retains the right to reduce any payment or credit due to the franchisee by any amount that the franchisee owes to them or their affiliates. This could include outstanding fees, royalties, or other financial obligations. This provision allows Embassy Suites to offset debts owed by the franchisee against any payments that the franchisee is due to receive, providing them with a mechanism to ensure timely payment of obligations.