In what specific situations might Embassy Suites waive part of the Franchise Application Fee?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
f those additional rooms/suites were part of your original Franchise Application.
While the Franchise Application Fee is usually applied uniformly, we may elect to reduce it after considering criteria which may include: incentives for the development of hotels within the System, a hotel's market position, the property size and the number of hotels in the System operated by a franchisee. In limited and unique circumstances, we may waive part of the Franchise Application Fee or negotiate the Franchise Application Fee for franchisees with whom we have previously dealt but we are not obligated to do so, even for franchisees possessing these characteristics. In 2024, franchis
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the Franchise Application Fee is typically applied uniformly, but there are circumstances where Embassy Suites may choose to reduce or waive part of it. These circumstances are not guaranteed and are at the discretion of Embassy Suites.
Embassy Suites may elect to reduce the Franchise Application Fee after considering factors such as incentives for developing hotels within their system, a hotel's market position, the property size, and the number of hotels in the system already operated by the franchisee. In limited and unique situations, Embassy Suites may waive part of the Franchise Application Fee or negotiate the fee for franchisees with whom they have previously worked.
It's important to note that even if a franchisee possesses these characteristics, Embassy Suites is not obligated to reduce or waive the fee. In 2024, the Franchise Application Fees for a Change of Ownership ranged from $7,500 to $200,000, illustrating the potential variability in these fees. Prospective franchisees should discuss these potential waivers or reductions with Embassy Suites during their due diligence process to understand if they might qualify based on their specific circumstances and the current incentives offered by the brand.