What is the total of contract acquisition costs and costs to obtain contracts for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | |
|---|---|
| Contract acquisition costs $ 376,063 $ (69,820) $ 306,243 | |
| Franchise contract intangible assets acquired 85,304 (3,317) 81,987 | |
| Costs to obtain contracts 7,259 (2,741) 4,518 | |
| $ 468,626 $ (75,878) $ 392,748 | |
| Contract acquisition costs $ 287,958 $ (54,374) $ 233,584 | |
| Costs to obtain contracts 7,256 (2,307) 4,949 | |
| $ 295,214 $ (56,681) $ 238,533 | |
| Recognized as a reduction of franchise royalty fees $ 16,053 $ 12,897 $ 11,972 | |
| Recognized in amortization expense 3,751 414 410 |
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the contract acquisition costs and the costs to obtain contracts are listed. For one set of figures, contract acquisition costs are $376,063, and costs to obtain contracts are $7,259. For another set of figures, contract acquisition costs are $287,958, and costs to obtain contracts are $7,256.
These figures likely represent different periods or categories of expenses related to securing franchise agreements. It's important to note that there are also figures representing reductions, such as $(69,820) and $(2,741) associated with the $376,063 and $7,259 figures, respectively, and $(54,374) and $(2,307) associated with the $287,958 and $7,256 figures, respectively. These reductions could be due to amortization or other accounting adjustments.
A prospective Embassy Suites franchisee should clarify with the franchisor what these figures represent, the time period they cover, and the nature of the reductions. Understanding these costs is crucial for assessing the overall financial investment and potential profitability of an Embassy Suites franchise.