Can Embassy Suites By Hilton's Maintenance Fees increase or decrease?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
The Maintenance Fees are subject to increase or decrease by HSS, in its sole discretion, on January 1 of each year during the term of this Agreement or any extension thereof; however, HSS will not charge Customer any Maintenance Fees that are greater than the Maintenance Fees charged to any similarly situated Customer (based upon factors determined by HSS in its sole judgment) utilizing equipment substantially similar to the Authorized Equipment and pursuant to an agreement which has terms and conditions substantially similar to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the maintenance fees associated with the Authorized Equipment are subject to change. Specifically, HSS, in its sole discretion, has the right to increase or decrease these fees on January 1 of each year during the term of the agreement or any extensions to it. This means that franchisees can expect potential fluctuations in their maintenance expenses annually.
However, the FDD stipulates a condition that protects franchisees from being overcharged compared to their peers. Embassy Suites By Hilton will not charge any franchisee maintenance fees that are higher than what is charged to other similarly situated franchisees. This comparison is based on factors determined solely by HSS, considering franchisees utilizing substantially similar equipment and operating under agreements with substantially similar terms and conditions.
This clause provides a degree of assurance that fee adjustments will be reasonable and consistent across the Embassy Suites By Hilton system. While the fees can change, the franchisee is protected from arbitrary or discriminatory pricing. It is important for prospective franchisees to understand the factors HSS uses to determine 'similarly situated' status to fully grasp the potential for maintenance fee adjustments during the term of their franchise agreement.