Is there a limit to how much Embassy Suites can increase the Maintenance Fees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Maintenance Fees are subject to increase or decrease by HSS, in its sole discretion, on January 1 of each year during the term of this Agreement or any extension thereof; however, HSS will not charge Customer any Maintenance Fees that are greater than the Maintenance Fees charged to any similarly situated Customer (based upon factors determined by HSS in its sole judgment) utilizing equipment substantially similar to the Authorized Equipment and pursuant to an agreement which has terms and conditions substantially similar to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, HSS reserves the right to increase or decrease the Proprietary Software Maintenance cost on an annual basis. These adjustments are made to reflect changes in HSS's internal costs, fluctuations in expenses from Preferred Providers, and any modifications to the hotel, such as the addition of guest rooms or suites. This means that as an Embassy Suites franchisee, you can expect potential annual adjustments to your software maintenance costs based on these factors.
Furthermore, Embassy Suites can also adjust the Maintenance Fees for Authorized Equipment. These fees may be increased or decreased by HSS at its discretion on January 1 of each year during the agreement term or any extensions. However, there is a stipulation that Embassy Suites will not charge a franchisee Maintenance Fees that are higher than what is charged to similarly situated franchisees utilizing substantially similar equipment and operating under substantially similar agreements.
In practical terms, this means that while Embassy Suites has the right to adjust maintenance fees, they must do so in a way that is consistent with what other franchisees are paying under comparable circumstances. As a prospective franchisee, it would be prudent to inquire about the typical range of these maintenance fees and the factors that could influence their adjustment to better understand potential cost fluctuations.