factual

Does the Monthly Program Fee for Embassy Suites cover publicity for an Embassy Suites franchise?

Embassy_Suites Franchise · 2025 FDD

Answer 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.

    1. 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 publicity. 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.

However, the Monthly Program Fee does not cover the costs for an Embassy Suites franchisee to participate in any optional marketing programs or other programs or services periodically offered by Embassy Suites or its affiliates in which the franchisee voluntarily chooses to participate. These fees also do not cover the cost of operating the hotel in accordance with the standards or the manual.

Embassy Suites may create or modify any programs and allocate monies derived from Monthly Program Fees to any regions or localities. The franchisor may also 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.