Does Embassy Suites By Hilton include applicable taxes in the indicated fees?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
All fees indicated are exclusive of applicable taxes, shipping, insurance, rigging, duties and other related fees and expenses, all of which are payable by Customer.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the fees outlined in the agreement do not include applicable taxes. Specifically, all fees indicated are exclusive of applicable taxes, shipping, insurance, rigging, duties, and other related fees and expenses. These additional costs are the responsibility of the customer, meaning the franchisee.
This means that when evaluating the costs associated with the Embassy Suites By Hilton franchise, prospective franchisees must factor in these additional taxes and expenses. These costs can vary depending on location, services rendered, and equipment required. It is important for franchisees to understand that the initial franchise fee and ongoing royalty fees are separate from these applicable taxes and other expenses.
Furthermore, if Hilton or its affiliates incur a Gross Receipts Tax based on payments made by the franchisee related to the agreement, the franchisee is responsible for reimbursing Hilton or the affected affiliates for such tax. This ensures that Hilton or its affiliates retain the agreed-upon amount after paying the Gross Receipts Tax. This condition highlights the importance of carefully reviewing all fee-related clauses in the franchise agreement to fully understand the financial obligations.