What is the due date for the Monthly Spa Royalty 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 Spa Royalty Fee | 2% of Gross Spa Revenue. | Payable monthly by the 15th day of the following month. | Payable only if Eforea Spa Amendment is in effect. See Note 1. |
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Monthly Spa Royalty Fee is due monthly by the 15th day of the following month. This fee is 2% of Gross Spa Revenue. However, this fee is only payable if the Eforea Spa Amendment is in effect.
For a prospective Embassy Suites By Hilton franchisee, this means that if they operate a spa under the Eforea Spa Amendment, they must remit 2% of the spa's gross revenue to the franchisor each month. This payment is due by the 15th of the subsequent month. For example, spa revenue generated in January would be subject to the 2% royalty fee, which must be paid to Embassy Suites By Hilton by February 15th.
It is important for franchisees to understand the conditions under which this fee applies, specifically the Eforea Spa Amendment. Franchisees should clarify with Embassy Suites By Hilton whether their hotel is expected or required to operate a spa and whether the Eforea Spa Amendment is a standard part of the franchise agreement or an optional addendum. Understanding these details is crucial for accurate financial planning and forecasting.