Who bears the cost and expense of advertising and promoting an Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1.7 advertise and promote the Hotel and related facilities and services on a local and regional basis in a first-class, dignified manner, using our identity and graphics Standards for all System Hotels, at your cost and expense.
You must submit to us for our approval samples of all advertising and promotional materials that we have not previously approved (including any materials in digital, electronic or
computerized form or in any form of media that exists now or is developed in the future) before you produce or distribute them.
You will not begin using the materials until we approve them.
You must immediately discontinue your use of any advertising or promotional material we disapprove, even if we previously approved the materials;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, franchisees are responsible for the costs associated with local and regional advertising and promotion of their hotel. Specifically, franchisees must advertise and promote their Embassy Suites By Hilton hotel and related facilities in a dignified manner, adhering to the brand's identity and graphic standards. This advertising must occur at the franchisee's own expense. Before producing or distributing any advertising or promotional materials that have not been previously approved, franchisees must submit samples to Embassy Suites By Hilton for approval. Usage of these materials is contingent upon receiving approval from Embassy Suites By Hilton, and franchisees must discontinue use of any disapproved material, even if previously approved.
Embassy Suites By Hilton also engages in marketing activities at a system-wide level. Franchisees are required to pay a Monthly Program Fee, which is used by Embassy Suites By Hilton for various programs that benefit the entire system or network. These programs include advertising, promotion, publicity, public relations, market research, and the development and maintenance of directories and internet sites. However, the franchisor has sole discretion over how these funds are spent, including control over creative concepts, advertising placement, and promotional programs.
It is important to note that the Monthly Program Fees paid by franchisees do not constitute a trust or advertising fund, and Embassy Suites By Hilton does not act as a fiduciary with respect to these fees. The franchisor is not obligated to expend funds in a manner that directly benefits each hotel in proportion to their payments, nor are they required to spend more than the total amount received from all hotels. This means that while franchisees contribute to system-wide marketing efforts, they also bear the responsibility for local advertising expenses, subject to the franchisor's approval of materials to ensure brand consistency.