What is the franchise application fee for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| (Note 1) | Application | |||
| Property Improvement Plan Fee (Note 2) | $0 to $10,000 | Lump sum | Before we prepare PIP | Us |
| Market Study | Varies | As agreed | As incurred | Supplier |
| (Note 3) | ||||
| Environmental Assessment | Varies | As agreed | As incurred | Supplier |
| (Note 4) | ||||
| Real Property | Varies | As agreed | As agreed | Supplier |
| (Note 5) | ||||
| Construction and Leasehold Improvement Costs (Note 6) | $36,000,000 to $55,000,000 | As agreed | As agreed | Suppliers |
| Designer and Engineering Fees | $1,440,000 to $2,200,000 | As agreed | As incurred | Suppliers |
| Furniture, Fixtures and | $6,000,000 | As required | As incurred | Suppliers |
| Equipment | to | |||
| (Note 7) | $9,000,000 | |||
| Inventory and Operating | $404,000 | As required | As incurred | Suppliers |
| Equipment | to | |||
| (Note 8) | $1,097,000 | |||
| Signage | $27,500 to $110,000 | As required | As incurred | Supplier |
| (Note 9) | ||||
| Computer Hardware and Software Systems (Note 10) | $77,071 to $157,679 | Lump sum or as required | 45 days before opening | Us or Supplier |
| Guest Internet Access System (Note 10) | $84,519 to $123,517 | Lump sum or as required | 45 days before opening | Supplier |
| Connected Room System (Note 10) | $40,180 to $48,020 | Lump sum or as required | 45 days before opening | Us |
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
| Delphi Sales and Events System (Note 10) | $900 to $41,000 | As required | As incurred | Supplier |
| Required Pre-Opening | $5,000 to $17,500 | As required | As incurred | Us and Suppliers |
| Training | ||||
| (Note 11) | ||||
| ADA Consultant Fee | $2,500 to $15,000 | Lump sum | On request | Supplier |
| (Note | ||||
| 12) | ||||
| Construction/Renovation | $0 to $10,000 | Lump sum | On request | Us |
| Extension Fees | ||||
| (Note 13) | ||||
| Insurance | Varies | As required | As arranged | Agent/Insurer |
| (Note 14) | ||||
| Organizational Expense | $75,000 to $285,104 | As agreed | As agreed | Accountant/ |
| (Note 15) | Attorney | |||
| Permits and Licenses (Note 16) | $540,000 to $825,000 | As required | As required | Government Agencies |
| Miscellaneous Pre-Opening | $1,080,000 | As agreed | As incurred | Suppliers |
| and Project Management | to | |||
| Expenses (Note 17) | $1,650,000 | |||
| Contingencies (Note 18) | $3,600,000 to $5,500,000 | As agreed | As incurred | Suppliers |
| Additional Funds (Note 19) | $600,000 to $1,000,000 | As agreed | As incurred | Suppliers |
| Eforea Spa Initial Fee (Note 20) | $0 to $25,000 | Lump sum | With Application | Us |
| Additional Funds for Eforea | $0 to $4,950,000 | As agreed | As incurred | Suppliers |
| Spa Implementation | ||||
| (Note | ||||
| 21) | ||||
| Other Required Pre-opening Services Fees (Note 22) | $6,000 | Lump sum | Before opening | Us |
| TOTAL | $50,082,670 to $82,170,820 | |||
| (Note 23) | THESE FIGURES DO NOT INCLUDE REAL ESTATE COSTS, MARKET STUDY, INSURANCE, INTEREST OR SEPARATELY IDENTIFY TH |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the franchise application fee is $100,000. This fee is paid as a lump sum when the application is submitted to Embassy Suites By Hilton. Note 1 in Item 7 of the FDD indicates that additional information regarding the Franchise Application Fee can be found in Item 5. The application fee is nonrefundable.
It's important to note that this fee is just one component of the total estimated initial investment, which ranges from $50,082,670 to $82,170,820. This total does not include real estate costs, market study, insurance, interest, or separately identify the costs of improvements under a conversion, re-licensing, or change of ownership license. Prospective franchisees should carefully consider all these costs and factors when evaluating the financial feasibility of opening an Embassy Suites By Hilton franchise.
In addition to the franchise application fee, franchisees may also encounter other fees such as a Property Improvement Plan (PIP) fee ranging from $0 to $10,000, which is paid before Embassy Suites By Hilton prepares the PIP. There is also an Eforea Spa Initial Fee of $0 to $25,000, which is due with the application if the franchisee intends to install an eforea spa in the hotel. These fees, along with other pre-opening expenses, contribute to the overall financial commitment required to start an Embassy Suites By Hilton franchise.