What programs are the Monthly Program Fees for Embassy Suites used to pay for?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ees in advance, or on a project-by-project basis, for any consultation service or advice you request.
4.4 Marketing.
4.4.1 We will publish (either in hard copy or electronic form) and make available to the traveling public a directory that includes System Hotels. We will include the Hotel in advertising of System Hotels and in international, national and regional marketing programs in accordance with our general practice for System Hotels.
- 4.4.2 We will use your Monthly Program Fee to pay for various programs to benefit the System and/or the Network, including:
- 4.4.2.1 advertising, promotion, publicity, public relations, market research, and other marketing programs;
- 4.4.2.2 developing and maintaining directories of and Internet sites for System Hotels and/or Network Hotels;
- 4.4.2.3 developing and maintaining the Reservation Service systems and support; and
- 4.4.2.4 administrative costs and overhead related to the administration or direction of these projects and programs.
- 4.4.3 We will have the sole right to determine how and when we spend these funds, including sole control over the creative concepts, materials and media used in the programs, the placement and allocation of advertising, and the selection of promotional programs.
- 4.4.4 We may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, and/or other services with any other entity, including any of our Affiliates or third parties.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the Monthly Program Fee is used to pay for various programs that benefit the Embassy Suites system and network. These programs include advertising, promotion, publicity, public relations, market research, and other marketing initiatives.
Additionally, the Monthly Program Fee covers the costs of developing and maintaining directories and Internet sites for System Hotels and/or Network Hotels. It also supports the development and maintenance of the Reservation Service systems. The fees also cover administrative costs and overhead related to the administration or direction of these projects and programs.
Embassy Suites has the sole right to determine how and when these funds are spent, including control over creative concepts, advertising placement, and promotional program selection. The fees are intended for the overall benefit of the system and network, not just individual hotels, and Embassy Suites is not obligated to spend amounts equivalent or proportionate to a franchisee's payments or ensure direct benefits to each hotel. The aggregate of Monthly Program Fees paid to Embassy Suites by System Hotels and/or Network Hotels does not constitute a trust or "advertising fund" and Embassy Suites is not a fiduciary.