Under what condition is an initial fee due for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The initial fee is due only if you are installing an eforea spa in your Hotel.
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- The low estimate assumes you are not opening a spa. The high estimate includes the cost to build out and equip the spa to current eforea spa standards, whether you are installing an eforea spa or another spa concept. Costs may be greater for a Conversion hotel.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, an initial fee related to an eforea spa is due only if the franchisee is installing an eforea spa in their hotel. The amount of this Eforea Spa Initial Fee ranges from $0 to $25,000, payable as a lump sum with the application to Embassy Suites.
The FDD also mentions 'Additional Funds for Eforea Spa Implementation' which ranges from $0 to $4,950,000. This amount is paid to suppliers as agreed and incurred. The low estimate for the Eforea Spa Initial Fee assumes that the franchisee is not opening a spa. The high estimate includes the cost to build out and equip the spa to current eforea spa standards, whether the franchisee is installing an eforea spa or another spa concept.
For prospective Embassy Suites franchisees, this means that the decision to include an eforea spa significantly impacts the initial investment. If a franchisee chooses to incorporate an eforea spa, they should budget for the initial fee and the additional implementation costs. If they choose not to include the spa, they will not be required to pay the initial eforea spa fee.