When is the Property Improvement Plan (PIP) Fee due for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application | $100,000 | With | See Note 1. |
| Fee – Re-licensing | Application. | ||
| 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' 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, this means that if you are considering converting an existing hotel to an Embassy Suites, acquiring an existing Embassy Suites through a change of ownership, or re-licensing an existing Embassy Suites, you should anticipate paying a $10,000 fee prior to the inspection of the property. This inspection is used to develop the Property Improvement Plan, which outlines any upgrades or changes needed to meet Embassy Suites' brand standards.
It is important to note that the FDD indicates that Embassy Suites may, under certain circumstances, waive or apply the PIP fee. Therefore, it is crucial to discuss the applicability of this fee with the franchisor during your due diligence process. Understanding the specific conditions under which the fee may be waived or adjusted can significantly impact your initial investment and financial planning.