Who has the sole right to determine how and when Monthly Program Fees are spent for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
rams to benefit the System and/or the Network, including:
- 4.4.2.1 advertising, promotion, publicity, public relations, market research, and other marketing programs;
- 4.4.2.2 developing and maintaining directories of and Internet sites for System Hotels and/or Network Hotels;
- 4.4.2.3 developing and maintaining the Reservation Service systems and support; and
- 4.4.2.4 administrative costs and overhead related to the administration or direction of these projects and programs.
- 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.
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 complete control over the creative concepts, materials, and media utilized in the programs, as well as the placement and allocation of advertising, and the selection of promotional programs.
This means that as an Embassy Suites franchisee, you contribute to the Monthly Program Fee, but you do not have a say in how those funds are used. Embassy Suites retains full discretion over these marketing and promotional activities. The FDD clarifies that these fees are intended to benefit the overall system and network, not any single hotel or market.
Embassy Suites can allocate these funds to any regions or localities as it deems appropriate, based on its business judgment. The document also states that the aggregate of Monthly Program Fees does not constitute a trust or advertising fund, and Embassy Suites is not a fiduciary with respect to these fees. This means that Embassy Suites is not legally obligated to spend the fees in a way that directly benefits your specific hotel or in proportion to your payments.
As an Embassy Suites franchisee, it is important to understand that while you are required to pay the Monthly Program Fee, you have no control over how those funds are spent, and there is no guarantee that your hotel will directly benefit from the expenditures. This is a common practice in franchising, where marketing and advertising decisions are typically centralized at the franchisor level to maintain brand consistency and maximize overall system benefits.