How may Embassy Suites require franchisees to transmit Monthly Fees and other payments?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.3 We may require you to transmit the Monthly Fees and all other payments required under this Agreement by wire transfer or other form of electronic funds transfer and to provide the standard schedule in electronic form. You must bear all costs of wire transfer or other form of electronic funds transfer or other electronic payment and reporting.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites may require franchisees to transmit Monthly Fees and all other payments via wire transfer or other form of electronic funds transfer. Additionally, Embassy Suites may require franchisees to provide the standard schedule in electronic form.
If Embassy Suites requires electronic transfers, the franchisee is responsible for covering all associated costs. This includes any fees charged for wire transfers or other electronic payment and reporting methods. This requirement ensures that Embassy Suites receives payments promptly and efficiently, while the franchisee bears the direct costs of using these electronic methods.
This payment flexibility allows Embassy Suites to adapt to modern financial practices and potentially streamline its accounting processes. For a prospective franchisee, it's important to factor in these potential transaction costs when budgeting for ongoing fees. Understanding the preferred payment methods and associated costs upfront can help in managing cash flow and avoiding unexpected expenses.