Under what circumstances do the PIP/Renovation Failure and Service Quality Improvement Program fees apply to an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
cover the cost of operating the hotel in accordance with the Standards or the Manual.
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- Our quality assurance program currently includes the Plans and Designs Late Fee, Brand Non-Compliance Fees, PIP/Renovation Failure Fee, the Stay Score Failure Fee, and Service Quality Improvement Program Fees shown here. These represent an evolution of our quality assurance program elements (in which fees were previously referred to as Quality Assurance Evaluation and Re-Evaluation Fees as applicable). More than one fee may apply in a particular circumstance. The PIP/Renovation Failure and Service Quality Improvement Program fees apply
in addition to any other quality assurance fees that may apply. If any quality assurance evaluation, re-evaluation, or Special is conducted on-site, you must also provide complimentary lodgings for our representative during the evaluation. See Items 8 and 11 for details on our quality assurance program, Service Quality Improvement Program, and FRCM.
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- We might make certain adjustments to the Service Quality Improvement Program (formerly known as the Quality Improvement Program) as program updates are implemented this year, but the total fees due will not exceed $50,000 over a
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the PIP/Renovation Failure Fee and Service Quality Improvement Program fees are part of the brand's quality assurance program. These fees are in addition to any other quality assurance fees that may apply. The document also mentions that more than one fee may apply in a particular circumstance, indicating that these fees can be levied concurrently with other fees related to quality assurance.
These fees are triggered by specific failures or shortcomings in maintaining brand standards, either through not completing required property improvement plans (PIPs) or through failures in service quality. The Service Quality Improvement Program may be adjusted as program updates are implemented, but the total fees due will not exceed $50,000 over a 6-month period, plus any applicable third-party vendor costs.
Prospective Embassy Suites franchisees should carefully review Items 8 and 11 of the FDD, as referenced in Item 6, for more detailed information on the quality assurance program, the Service Quality Improvement Program, and the Franchise Revenue Compliance Measurement (FRCM). Understanding the specific triggers and amounts of these fees is crucial for budgeting and maintaining compliance with Embassy Suites's standards.