What is included in the definition of 'Gross Spa Revenue' for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Spa Revenue" means all revenue from services and retail sales of products from the eforea spa, less allowances for spa rebates and overcharges, but does not include any sales or other taxes collected directly from spa customers or any revenues from food and beverage sales of the spa.
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, Gross Spa Revenue is defined as all revenue derived from services and retail sales of products from the eforea spa. This figure is calculated by subtracting allowances for spa rebates and overcharges from the total revenue.
However, the definition explicitly excludes certain items from Gross Spa Revenue. Any sales or other taxes collected directly from spa customers are not included in the calculation. Additionally, revenues from food and beverage sales within the spa are also excluded from Gross Spa Revenue.
Understanding this definition is crucial for Embassy Suites By Hilton franchisees because the Monthly Spa Royalty Fee is calculated as 2% of Gross Spa Revenue. This fee is payable monthly, specifically by the 15th day of the following month, but only if the Eforea Spa Amendment is in effect. Therefore, accurately calculating and reporting Gross Spa Revenue is essential for compliance with the franchise agreement and for determining the correct royalty payments.