Does Embassy Suites receive fees or rebates from my purchases related to promotional programs?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
timated cost of establishing a Brickstones Kitchen and Bar is included in Item 7 above.
Promotional Programs
We may develop promotional programs with third-party companies that feature those companies' branded products or services being offered or used by our System Hotels. By way of example, we have collaborated with Tesla Inc., in connection with our electric vehicle (EV) charging program, and with Mars Petcare and its family of pet care brands in connection with our petfriendly hotel programs. We may launch, modify, and end any such promotional programs at any time. We may require or permit your Hotel to participate in these promotional programs, which can involve: (1) offering specified promotional program products or services to guests; (2) participating in related marketing efforts; (3) following related operating Standards; (4) purchasing and using certain related equipment and supplies; and (5) paying any fees or costs associated with the promotional programs (if any). We may designate approved suppliers for any such promotional programs or related products and services, and we and our affiliates may receive fees, rebates, and other revenues from your purchases related to these promotional programs as described in this Item 8.
Construction and Renovation
Before we permit you to proceed with your plans for construction or remodeling of the hotel, and any time you make changes that affect usability or access to your Hotel, your architect or other applicable certified professional must certify to us that the hotel's plans and specifications comply with all Laws related to accessibility/accommodations/facilities for those with disabilities, as further described in the Manual. You may be required to complete an ADA Survey in conjunction with an approved ADA consultant and in the form required by us, to determine if the hotel is in compliance with the ADA within 30 days of our request. The process for completing the survey, and other requirements related to it, will be set forth in the Manual. If requested, you must arrange for us and/or our affiliates to participate in all progress meetings during the development and construction of the hotel, to have access to all contract and construction documents for the hotel and to have access to the hotel during reasonable business hours to inspect the hotel and its construction, completion, furnishing and equipment for conformity to the finally-approved construction documents. However, we and our affiliates have no obligation to participate in progress meetings or to inspect the hotel. Our approval is not a representation of the adequacy
of the plans and specifications, the structural integrity, or the sufficiency of the mechanical and electrical systems for the hotel. When you begin construction or conversion of the hotel and before your Hotel opens for business, both you and your architect or general contractor must provide us with a certificate stating that the plans and as-built premises comply with all applicable legal requirements relating to accessibility/accommodations/ facilities for those with disabilities, as is further described in the Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–50)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites and its affiliates may receive fees, rebates, and other revenues from franchisee purchases related to promotional programs. These programs may involve offering specific products or services to guests, participating in marketing efforts, following operating standards, purchasing related equipment and supplies, and paying associated fees.
Embassy Suites may develop promotional programs with third-party companies, featuring their branded products or services. For example, they have collaborated with Tesla Inc. for electric vehicle charging and with Mars Petcare for pet-friendly hotel programs. These programs can be launched, modified, or ended at any time, and Embassy Suites may require or permit franchisee participation.
HSM, a wholly-owned subsidiary of Hilton, negotiates with third-party manufacturers and suppliers for various hotel-related items and services. HSM seeks to negotiate lower prices and preferred terms, passing these benefits on to franchisees, but cannot guarantee lower costs than available elsewhere. HSM may also negotiate special purchase arrangements for franchisees or their management companies operating multiple hotels and may permit competitor hotels to participate to increase purchasing volume and bargaining power.
For the fiscal year ended December 31, 2024, HSM had revenues of $19,614,010 in rebates and allowances on purchases made by franchisees of all of their brands and $38,697,912 in administrative fees on purchases made by franchisees of all of their brands. This indicates that participation in these programs could have a financial impact, both positive and negative, on the franchisee's business.