Under what conditions can an Embassy Suites franchisee charge a Mandatory Guest Fee?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in, and pay all charges related to, all guest frequency programs we or Hilton require, including the Hilton Honors Worldwide guest reward programs or any successor programs. You must also honor the terms of any discount or promotional programs (including any frequent guest program) that we or Hilton offer to the public on your behalf, any room rate quoted to any guest at the time the guest makes an advance reservation, and any award guest certificates issued to hotel guests participating in these programs. You may not charge any Mandatory Guest
Fee without our consent, in accordance with the Standards and subject to our requirements for granting such consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 75–77)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are generally prohibited from charging a Mandatory Guest Fee. The FDD states that an Embassy Suites franchisee may not charge any Mandatory Guest Fee without the franchisor's consent. This consent must be obtained in accordance with the brand's standards and is subject to specific requirements for granting such consent.
This restriction is significant for prospective franchisees as it limits their ability to independently set or add fees that guests must pay. The franchisor retains control over pricing and fee structures, ensuring consistency across the Embassy Suites system and adherence to brand standards. Franchisees must, therefore, seek and obtain explicit approval before implementing any mandatory guest fees.
The requirement for franchisor consent aligns with common practices in the hotel franchising industry, where maintaining brand uniformity and customer satisfaction are paramount. By controlling mandatory fees, Embassy Suites aims to prevent individual franchisees from potentially harming the brand's reputation through excessive or unjustified charges. This policy ensures that any additional fees are implemented strategically and in a manner consistent with the overall brand image and customer experience.
Prospective franchisees should carefully review the brand's standards and requirements for obtaining consent to charge a Mandatory Guest Fee. Understanding these conditions is crucial for accurately forecasting revenue and managing guest relations. Franchisees should also inquire about the specific criteria used to evaluate requests for such fees to ensure they can meet the necessary requirements if they wish to implement them.