What is the range for the Property Improvement Plan fee for an Embassy Suites franchise, and when is it due?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
IMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| (Note 1) | Application | |||
| Property Improvement Plan | $0 to $10,000 | Lump sum | Before we | Us |
| Fee (Note 2) | prepare PIP | |||
| Market Study | Varies | As agreed | As incurred | Supplier |
| (No |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) fee ranges from $0 to $10,000. This fee is paid as a lump sum.
The PIP fee is due before Embassy Suites prepares the Property Improvement Plan. This plan outlines the upgrades and renovations required for the hotel, especially when converting an existing hotel to an Embassy Suites or relicensing an existing location. The fee covers the cost for Embassy Suites to determine these upgrading requirements.
It's important to note that this fee is nonrefundable. Prospective franchisees should factor this cost into their initial investment, particularly if they are considering converting an existing hotel. Understanding the scope of the PIP and its associated costs is crucial for budgeting and financial planning before entering into a franchise agreement with Embassy Suites.