What costs are NOT covered by the Monthly Program Fee for Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
bligated to expend funds in excess of the amounts received from franchisees. If any interest is earned on unused Monthly Program Fees, we will use the interest before using the principal. The Monthly Program Fee does not cover your costs of participating in any optional marketing programs and promotions periodically offered by us or our affiliates in which you voluntarily choose to participate. These fees also do not cover the cost of operating your Hotel in accordance with the standards in the Manual. (Franchise Agreement, Section 4.4).
Web Sites
You may not register, own, or maintain any internet domain names, World Wide Web or other electronic communications sites, including mobile applications (each, a "Site" and collectively, "Sites"), relating to the Network, the System, or your Hotel, or that include the Marks. The only Sites, or Site contractors, that you may use for your Hotel are those assigned or approved by us. You must obtain our prior written approval of any third-party Site in which your Hotel will be listed, any proposed links between the Site and any other Sites ("Linked Sites"), and any proposed modifications to all Sites and Linked Sites.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Monthly Program Fee covers various programs benefiting the System and Network, such as advertising, market research, reservation services, quality assurance, and technology programs. However, it does not cover all expenses a franchisee will incur. Specifically, the Monthly Program Fee does not cover the costs of participating in optional marketing programs and promotions that Embassy Suites By Hilton or its affiliates may offer. Additionally, the fee does not cover the costs of operating the Hotel in accordance with the standards outlined in the Manual.
Beyond these exclusions, there are several other costs that the Monthly Program Fee does not cover. For instance, franchisees must pay $2,500 for the preparation of a Digital Floor Plan for their Hotel. This fee is non-refundable and is paid to HSS before opening. Additionally, while there is no separate charge for the Digital Key system, the hardware consisting of electronic door locksets and a programming device are included in the construction cost estimates outlined in Item 7.
Furthermore, the Monthly Program Fee does not cover the costs associated with certain training programs. While some training programs like Hilton Honors Training, ADA Training, and OnQ Rate & Inventory and GRO Training do not have separate fees, others such as the Hilton Core Sales Skills program (costing up to $600 per attendee) and the New to Hospitality Owner Education (costing up to $2,500 per participant) are not covered. The cost for OnQ connectivity, which ranges from $400 to $600 per month, is also not included in the Monthly Program Fee. Finally, participation in the annual Brand or regional conference, which costs $2,500 per attendee, and the General Manager, Commercial and Sales Leader Training, which costs up to $1,200, are also not covered by the Monthly Program Fee.