What is the basis for calculating the Monthly Program Fee for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Monthly Program Fee | 4% of Gross Rooms Revenue. | Payable monthly by the 15th day of the following month. | We can change the Monthly Program Fee. See Notes 1 and 2. |
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Monthly Program Fee is calculated as 4% of Gross Rooms Revenue. This fee is payable monthly, specifically by the 15th day of the following month. However, Embassy Suites By Hilton retains the right to change the Monthly Program Fee, so this percentage is subject to adjustment over time.
This Monthly Program Fee contributes to the various marketing and guest loyalty programs that Embassy Suites By Hilton utilizes. These programs include the Hilton Honors guest reward program, as well as partnerships with airlines and rental car companies. Franchisees are required to participate in these programs and bear their share of the associated costs.
Prospective franchisees should be aware that while the Monthly Program Fee is initially set at 4% of Gross Rooms Revenue, Embassy Suites By Hilton has the discretion to modify this fee. It is important to stay informed about any potential changes to this fee, as it directly impacts the operating costs and profitability of the franchise. Franchisees should also factor in the costs associated with other marketing and guest frequency programs, as these are separate from the Monthly Program Fee.