What section of the Embassy Suites agreement discusses the payment of monthly fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
8.0 PAYMENT OF FEES
8.1 Monthly Fees. Beginning on the Opening Date, you will pay to us for each month (or part of a month, including the final month you operate under this Agreement) the Monthly Fees, each of which is set forth in the Addendum.
8.2 Calculation and Payment of Fees.
- 8.2.1 The Monthly Fees will be calculated in accordance with the accounting methods of the then-current Uniform System of Accounts for the Lodging Industry, or as specified by us in the Manual.
- 8.2.2 The Monthly Fees will be paid to us at the place and in the manner we designate on or before the fifteenth (15th) day of each month and will be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Fees for such month.
- 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.
- 8.2.4 In the event of fire or other insured casualty that results in a reduction of Gross Rooms Revenue [INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]**, you will determine and pay us, from the proceeds of any business interruption or other insurance applicable to loss of revenues, an amount equal to the forecasted Monthly Fees, based on the Gross Rooms Revenue
[INSERT ONLY FOR CI, HFS: and Gross Food and Beverage Revenue**]** amounts agreed on between you and your insurance company that would have been paid to us in the absence of such casualty.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Section 8.0 of Item 22, titled "Payment of Fees," details the franchisee's monthly fee obligations. Specifically, subsection 8.1 states that beginning on the Opening Date, the franchisee must pay monthly fees, the amounts of which are specified in the Addendum.
The document further clarifies in subsection 8.2 how these monthly fees are calculated and when they are due. The fees are calculated according to the accounting methods in the Uniform System of Accounts for the Lodging Industry or as specified in the Manual. Payment is due on or before the 15th day of each month, accompanied by a schedule detailing the fee computation.
Embassy Suites may also require electronic funds transfers for these payments, with the franchisee bearing all associated costs. In the event of a casualty like a fire that reduces Gross Rooms Revenue, the franchisee is obligated to pay forecasted Monthly Fees from any business interruption insurance proceeds, based on revenue amounts agreed upon with their insurance company.