Does the Monthly Program Fee for Embassy Suites cover public relations for an Embassy Suites franchise?
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.
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 public relations. The Monthly Program Fee pays for various programs that benefit the Embassy Suites system and/or the network. These programs include advertising, promotion, publicity, public relations, market research, and other marketing programs.
Embassy Suites may modify these programs and allocate funds from the Monthly Program Fees to specific 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, should a franchisee voluntarily choose to participate.
It's important to note that Embassy Suites can change the Monthly Program Fee rate at any time, but the rate will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement. This provides some predictability for franchisees regarding potential fee increases.