What is the initial fee for an Embassy Suites eforea spa, and when is it due?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Subsection 5.1.1 of the Franchise Agreement is deleted and replaced with the following:
- 5.1.1 after the Opening Date, operate the Hotel twenty-four (24) hours a day; provided, however, you will operate the eforea spa for those days of the week and hours of the day that we may periodically establish;
- (b) Subsection 5.1.27 of the Franchise Agreement is amended by deleting the word "and" after the semicolon,
- (c) Subsection 5.1.28 of the Franchise Agreement is amended by changing the period to a semicolon and adding the following subparagraphs:
- 5.1.29 the Opening Date for the eforea spa must be within twelve (12) months of the Effective Date of the eforea Amendment;
- 5.1.30 after the Opening Date, operate the eforea spa for those days of the week and hours of the day as we may establish;
- 5.1.31 you must display all material, including brochures and promotional materials we provide for eforea spas, and allow advertising and promotion of eforea spas on y
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees who wish to add an eforea spa to their hotel must pay an initial fee of $25,000. This fee is due upon the execution of the eforea Spa Amendment to the Franchise Agreement.
This initial fee grants the franchisee the right to operate the eforea spa under the Embassy Suites brand, subject to the terms and conditions outlined in the amendment. The fee is considered fully earned by Embassy Suites at the time the amendment is executed and is non-refundable.
In addition to the initial fee, franchisees will also be required to pay a spa royalty fee, which is 2% of the Gross Spa Revenue. This royalty fee is added to the Monthly Royalty Fee but is only payable on Gross Spa Revenue. Gross Spa Revenue includes all revenue from services and retail sales of products from the eforea spa, less amounts for spa rebates and overcharges, but does not include any sales or other taxes collected directly from spa customers or any revenue derived from food and beverage sales from the eforea spa.