When is the Property Improvement Plan (PIP) Fee due for an Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Property Improvement Plan (“PIP”) Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) Fee is $10,000 and is due before the PIP inspection is scheduled. This fee is payable for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. However, Embassy Suites may waive the PIP fee or apply the PIP fee in some circumstances.
For prospective Embassy Suites franchisees considering a Conversion, Change of Ownership, or Re-licensing, this means they need to budget $10,000 for the PIP fee and ensure it is paid before the inspection. Understanding the circumstances under which Embassy Suites might waive or apply the fee is crucial for financial planning. Franchisees should discuss these potential circumstances with the franchisor to clarify their specific situation.
The PIP is a critical step in ensuring the property meets Embassy Suites's standards, and the fee covers the cost of preparing this plan. The potential waiver of this fee could represent a significant cost saving for franchisees, making it important to understand the conditions for such a waiver. This fee is specific to existing hotels undergoing a change and is not applicable to new developments.
It is important for potential franchisees to clarify with Embassy Suites whether the PIP fee is applicable to their specific situation and to understand the timing of the inspection. This will allow them to plan their finances accordingly and avoid any delays in the process. Understanding the full scope of the PIP requirements is essential for a successful transition or re-licensing of an Embassy Suites property.