What happens if an Embassy Suites By Hilton audit discloses an overpayment?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
If the audit discloses an overpayment, we will credit this overpayment against your future payments due under this Agreement, without interest, or, if no future payments are due under this Agreement, we will promptly pay you the amount of the overpayment without interest.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, if an audit reveals that a franchisee has overpaid, Embassy Suites By Hilton will handle the overpayment in one of two ways. If the franchisee has future payments due under the franchise agreement, Embassy Suites By Hilton will credit the overpayment against those future payments. This credit will be applied without any interest accruing on the overpayment amount.
Alternatively, if the franchisee does not have any future payments due to Embassy Suites By Hilton under the agreement, Embassy Suites By Hilton will promptly pay the franchisee the amount of the overpayment. Similar to the crediting scenario, this payment will also be made without any interest.
This policy ensures that Embassy Suites By Hilton franchisees are reimbursed for any overpayments discovered during audits, either through credits against future obligations or direct payment, providing a degree of financial fairness and accuracy in the financial relationship between the franchisor and franchisee.