Within how many days after termination must the Embassy Suites franchisee pay the termination fee?

According to the 2025 Embassy Suites Franchise Disclosure Document, a franchisee must pay the termination fee within thirty (30) days after the termination of the agreement. The franchisee may also be required to pay the termination fee on demand.

The termination fee is not considered a penalty or liquidated damages but rather an agreed-upon fee. The FDD specifies that this fee does not grant the franchisee any right or option to terminate the agreement before the expiration date.

Embassy Suites outlines different methods for calculating the termination fee, depending on when the termination occurs. If termination occurs before the franchisee begins hotel work and the franchisee or guarantor enters into an agreement for a similar facility at the hotel site within one year after termination, the franchisee will pay $25,000 multiplied by the number of approved guest rooms at the hotel. If termination occurs on or after the opening date but before the second anniversary, the franchisee will pay the greater of the hotel's average monthly royalty fees multiplied by sixty or $25,000 multiplied by the number of approved guest rooms. If termination occurs after the second anniversary but before the final sixty calendar months of the term, the franchisee will pay the hotel's average monthly royalty fees multiplied by sixty. If there are fewer than sixty months remaining in the term on the date of termination, the franchisee will pay the hotel's average monthly royalty fees multiplied by the number of months remaining in the term.