For Embassy Suites, are the indicated fees inclusive or exclusive of applicable taxes?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| QTY | ITEM OF /SOFTWARE/EQUIPMENT | FEES/COSTS | MONTHLY MAINT. |
|---|---|---|---|
| TOTAL PRICE |
The prices shown above exclude taxes, travel expenses, per diem fees, related costs, insurance and shipping.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, all indicated fees are exclusive of applicable taxes. Specifically, this applies to fees related to software maintenance and additional services. Furthermore, the total price quoted for services and equipment excludes taxes, shipping, and any monthly fee items not explicitly mentioned in the agreement.
This means that as an Embassy Suites franchisee, you should anticipate that the fees outlined in the franchise agreement and related documents will be subject to additional taxes. It is important to factor these taxes into your financial projections to accurately assess the overall cost of operating the franchise. Failing to account for these taxes could lead to underestimation of expenses and potential financial strain.
In addition to the base fees, franchisees are also responsible for travel expenses, per diem fees, and related costs incurred by HSS (Hilton Supply Management Services) or its vendors for any additions or services provided. These expenses also exclude taxes, and franchisees must promptly reimburse HSS for these costs. This includes round-trip airfare, accommodations, meals, ground transportation, tips, and miscellaneous expenses.
Therefore, when evaluating the financial obligations associated with an Embassy Suites franchise, prospective franchisees should carefully review all fee schedules and ensure that they understand which fees are subject to taxes and other additional expenses. It is advisable to consult with a financial advisor to develop a comprehensive financial plan that accounts for all potential costs, including taxes, travel expenses, and any other applicable charges.