Is the initial fee for an Embassy Suites eforea spa refundable?
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 t
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the initial fee for an eforea spa is not refundable. The franchisee must pay an initial fee of $25,000 upon execution of the eforea Spa Amendment to the Franchise Agreement. Embassy Suites considers this fee fully earned upon execution of the amendment, meaning it will not be returned under any circumstances.
This non-refundable initial fee is consideration for the grant of the right to operate an eforea spa. This means that once the franchisee signs the amendment, Embassy Suites has earned the fee for granting the franchisee the right to use the eforea name and system.
This is a standard practice in franchising, as the initial fee typically covers the franchisor's costs associated with granting the franchise and providing initial support. Franchisees should be aware of this non-refundable fee and carefully consider their decision before signing the amendment. If a franchisee terminates the agreement shortly after signing, they will not receive a refund of this $25,000 payment.