Does the Monthly Program Fee for Embassy Suites cover advertising and promotion?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- Our quality assurance program currently includes the Plans and Designs Late Fee, Brand Non-Compliance Fees, PIP/Renovation Failure Fee, the Stay Score Failure Fee, and Service Quality Improvement Program Fees shown here. These represent an evolution of our quality assurance program elements (in which fees were previously referred to as Quality Assurance Evaluation and Re-Evaluation Fees as applicable). More than one fee may apply in a particular circumstance. The PIP/Renovation Failure and Service Quality Improvement Program fees apply
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 does cover advertising and promotion. Specifically, the Monthly Program Fee is used for various programs that benefit the Embassy Suites system and network. These programs include advertising, promotion, publicity, public relations, market research, and other marketing programs.
However, the Monthly Program Fee does not cover the costs for franchisees to participate in optional marketing programs or other services that Embassy Suites or its affiliates may offer periodically and in which the franchisee voluntarily chooses to participate. Additionally, the fee does not cover the cost of operating the hotel in accordance with the brand's standards or manual.
Embassy Suites also retains the right to modify the Monthly Program Fee rate at any time, but the rate will not increase by more than 1% of Gross Rooms Revenue over the term of the Franchise Agreement. This gives Embassy Suites flexibility in allocating funds to different regions or localities as needed.