Does the Monthly Program Fee for Embassy Suites cover administrative costs?

According to Embassy Suites's 2025 Franchise Disclosure Document, the Monthly Program Fee does cover administrative costs. Specifically, the fee covers administrative costs and overhead related to the administration or direction of projects and programs that benefit the Embassy Suites system or network. These projects and programs include maintaining reservation service systems, directories, and internet sites, as well as advertising, marketing, quality assurance, and certain technology programs.

Embassy Suites may modify these programs and allocate funds from the Monthly Program Fees to different regions or localities. However, the Monthly Program Fee does not cover the costs for franchisees to participate in optional marketing programs or other services offered by Embassy Suites or its affiliates. Additionally, the fee does not cover the costs of operating the hotel in accordance with the brand's standards or manual.

The Monthly Program Fee rate can be changed at any time, but it will not increase by more than 1% of Gross Rooms Revenue over the term of the Franchise Agreement. This ensures that while Embassy Suites has the flexibility to adjust the fee, there is a limit to how much it can increase, providing some financial predictability for franchisees.

Prospective franchisees should be aware that while the Monthly Program Fee covers a range of services and administrative costs, it does not include all expenses related to operating the hotel or participating in optional programs. Understanding the scope of coverage and potential for fee adjustments is crucial for budgeting and financial planning.