What programs are funded by the Monthly Program Fee 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. 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 funds various programs that benefit the Embassy Suites system and network. These programs include the development and maintenance of reservation service systems and support, directories and internet sites for system hotels, advertising, promotion, publicity, public relations, market research, and other marketing programs. The fee also covers certain quality assurance and technology programs. Finally, the Monthly Program Fee covers administrative costs and overhead related to the administration or direction of these projects and programs.
Embassy Suites has the right to 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, nor does it cover the cost of operating the hotel in accordance with brand standards.
It is 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, but they should still be prepared for potential fee increases. Prospective franchisees should carefully consider these costs and the programs they support when evaluating the Embassy Suites franchise opportunity.