When are the Monthly Fees due to Embassy Suites, and what must accompany the payment?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.2 The Monthly Fees will be paid to us at the place and in the manner we designate on or before the fifteenth (15th) day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Fees for such month.
- 8.2.3 We may require you to transmit the Monthly Fees and all other payments required under this Agreement by wire transfer or other form of electronic funds transfer and to provide the standard schedule in electronic form. You must bear all costs of wire transfer or other form of electronic funds transfer or other electronic payment and reporting.
- 8.2.4 In the event of fire or other insured casualty that results in a reduction of Gross Rooms Revenue [INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]**, you will determine and pay us, from the proceeds of any business interruption or other insurance applicable to loss of revenues, an amount equal to the forecasted Monthly Fees, based on the Gross Rooms Revenue
[INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]** amounts agreed on between you and your insurance company that would have been paid to us in the absence of such casualty.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, monthly fees are due on or before the fifteenth (15th) day of each month. These fees cover each month (or part of a month) starting from the Opening Date. The specific amounts for these fees are detailed in the Addendum.
Payments must be sent to the location and in the manner that Embassy Suites designates. Each payment must include a standard schedule that provides a detailed computation of the monthly fees for that period. Embassy Suites may require franchisees to use wire transfers or other electronic funds transfer methods for payments, along with submitting the standard schedule in electronic form. The franchisee is responsible for covering all costs associated with these electronic payment methods.
In the event of a fire or other insured casualty that reduces Gross Rooms Revenue (and Gross Food and Beverage Revenue, if applicable), Embassy Suites will determine and receive an amount equal to the forecasted Monthly Fees from the proceeds of any business interruption insurance. This amount will be based on the Gross Rooms Revenue (and Gross Food and Beverage Revenue) amounts agreed upon between the franchisee and their insurance company, representing what would have been paid to Embassy Suites had the casualty not occurred. This ensures that Embassy Suites continues to receive its expected fees even during periods of business interruption due to unforeseen events, provided the franchisee maintains adequate insurance coverage.