Who has the right to determine how and when the Monthly Program Fees are spent for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4.3 We will have the sole right to determine how and when we spend these funds, including sole control over the creative concepts, materials and media used in the programs, the placement and allocation of advertising, and the selection of promotional programs.
4.4.4 We may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, and/or other services with any other entity, including any of our Affiliates or third parties.
4.4.5 You acknowledge that Monthly Program Fees are intended for the benefit of the System and the Network and will not simply be used to promote or benefit any one Network Hotel or market.
We will have no obligation in administering any activities paid for with the Monthly Program Fee to make expenditures for you that are equivalent or proportionate to your payments or to ensure that the Hotel benefits directly or proportionately from such expenditures.
- 4.4.6 We may create any programs and allocate monies derived from Monthly Program Fees to any regions or localities, as we consider appropriate in our sole business judgment.
The aggregate of Monthly Program Fees paid to us by System Hotels and/or Network Hotels does not constitute a trust or "advertising fund" and we are not a fiduciary with respect to the Monthly Program Fees paid by you and other System Hotels and/or other Network Hotels.
- 4.4.7 We are not obligated to expend funds in excess of the amounts received from System Hotels and/or Network Hotels.
If any interest is earned on unused Monthly Program Fees, we will use the interest before using the principal.
The Monthly Program Fee does not cover your costs of participating in any optional marketing programs and promotions offered by us in which you voluntarily choose to participate.
These Monthly Program Fees do not cover the cost of operating the Hotel in accordance with the Standards.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Embassy Suites has the sole right to determine how and when the Monthly Program Fees are spent. This includes sole control over the creative concepts, materials, and media used in the programs, the placement and allocation of advertising, and the selection of promotional programs.
Embassy Suites may enter into arrangements with its affiliates or third parties for development, marketing, operations, administrative, technical, and support functions. The Monthly Program Fees are intended for the benefit of the System and the Network and will not simply be used to promote or benefit any one Network Hotel or market. Embassy Suites has no obligation to make expenditures for a franchisee that are equivalent or proportionate to their payments or to ensure that the Hotel benefits directly or proportionately from such expenditures.
Embassy Suites may create any programs and allocate monies derived from Monthly Program Fees to any regions or localities, as it considers appropriate in its sole business judgment. The aggregate of Monthly Program Fees paid to Embassy Suites by System Hotels and/or Network Hotels does not constitute a trust or "advertising fund," and Embassy Suites is not a fiduciary with respect to the Monthly Program Fees paid by franchisees and other System Hotels and/or other Network Hotels. Embassy Suites is not obligated to expend funds in excess of the amounts received from System Hotels and/or Network Hotels. If any interest is earned on unused Monthly Program Fees, Embassy Suites will use the interest before using the principal. The Monthly Program Fee does not cover a franchisee's costs of participating in any optional marketing programs and promotions offered by Embassy Suites in which they voluntarily choose to participate, nor does it cover the cost of operating the Hotel in accordance with the Standards.