Does the Monthly Program Fee for Embassy Suites cover market research?
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.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the Monthly Program Fee does cover market research. The Monthly Program Fee pays for programs that benefit the Embassy Suites system, including market research.
The FDD specifies that the Monthly Program Fee covers various programs, such as maintaining reservation service systems, directories, and internet sites. It also includes advertising, promotion, publicity, public relations, market research, and other marketing programs. Additionally, the fee covers certain quality assurance and technology programs, as well as administrative costs related to these projects.
Embassy Suites has the right to 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, nor does it cover the costs of operating the hotel according to the brand's standards or manual. The Monthly Program Fee rate can be changed at any time, but it will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement.