factual

Under what condition will Embassy Suites not charge Maintenance Fees?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

No maintenance fees will be charged to Customer for any Non-maintained Equipment as described in Section 1 above.

Source: Item 23 — RECEIPTS (FDD pages 97–305)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, maintenance fees will not be charged for any Non-maintained Equipment. This means that if a franchisee and HSS (the provider) agree in writing to exclude certain pieces of authorized equipment from the standard maintenance agreement, then the franchisee will not be charged maintenance fees for that specific equipment. Neither HSS nor the Preferred Provider will be responsible for any maintenance or support of Non-maintained Equipment.

This provision allows for some flexibility in managing costs, as franchisees can potentially reduce their maintenance expenses by opting out of maintenance services for equipment deemed less critical or for which they prefer to handle maintenance independently. However, this decision requires advance written approval from HSS, indicating that Embassy Suites retains control over which equipment can be designated as Non-maintained.

It is important for prospective Embassy Suites franchisees to carefully consider the implications of designating equipment as Non-maintained. While it can reduce fees, it also means the franchisee assumes full responsibility for any repairs or replacements. Franchisees should evaluate the potential cost savings against the risk of incurring potentially higher expenses for self-managed maintenance, as well as the potential impact on the overall operation if the equipment fails.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.