What is the maximum increase allowed for the Monthly Program Fee rate for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We may change the Monthly Program Fee rate at any time. The Monthly Program Fee rate will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement. The Monthly Program Fee pays for various programs to benefit the System and/or the Network, including: (i) developing and maintaining the Reservation Service systems and support; (ii) developing and maintaining directories and Internet sites for System Hotels; (iii) advertising, promotion, publicity, public relations, market research, and other marketing programs; (iv) certain quality assurance programs; (v) certain technology programs; and (vi) administrative costs and overhead related to the administration or direction of these projects and programs. We may create or modify any programs and allocate monies derived from Monthly Program Fees to any regions or localities. The Monthly Program Fee does not cover your costs of participating in any optional marketing programs or other programs or services periodically offered by us or our affiliates in which you voluntarily choose to participate. These fees also do not cover the cost of operating the hotel in accordance with the Standards or the Manual.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Monthly Program Fee rate can change at any time during the term of the Franchise Agreement. However, the rate will not exceed the current rate plus 1% of Gross Rooms Revenue.
The Monthly Program Fee covers various programs that benefit the Embassy Suites system and network. These include maintaining reservation services, developing directories and internet sites, advertising, marketing, quality assurance, technology programs, and administrative overhead. The franchisor, at its discretion, can modify these programs and allocate funds to different regions or localities.
It is important to note that the Monthly Program Fee does not cover the franchisee's costs for optional marketing programs or the costs of operating the hotel according to the brand's standards and manuals. Franchisees should factor in these additional expenses when evaluating the overall cost of operating an Embassy Suites franchise.