Does Embassy Suites have an obligation to waive or negotiate the Franchise Application Fee for franchisees with whom they have previously dealt?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
f those additional rooms/suites were part of your original Franchise Application.
While the Franchise Application Fee is usually applied uniformly, we may elect to reduce it after considering criteria which may include: incentives for the development of hotels within the System, a hotel's market position, the property size and the number of hotels in the System operated by a franchisee. In limited and unique circumstances, we may waive part of the Franchise Application Fee or negotiate the Franchise Application Fee for franchisees with whom we have previously dealt but we are not obligated to do so, even for franchisees possessing these characteristics. In 2024, franchis
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, while the Franchise Application Fee is generally applied uniformly, Embassy Suites may choose to reduce it based on factors such as incentives for hotel development, a hotel's market position, property size, and the number of hotels a franchisee operates within the system.
In specific and limited situations, Embassy Suites may waive a portion of or negotiate the Franchise Application Fee for franchisees with whom they have previously worked. However, Embassy Suites is not obligated to do so, even if the franchisee meets certain criteria.
In 2024, franchisees paid Franchise Application Fees ranging from $7,500 to $200,000 for Change of Ownership, which demonstrates the potential variability in these fees. This indicates that while there is no guarantee of a waiver or negotiation, prior dealings with Embassy Suites could be a factor in determining the Franchise Application Fee.