Can the Monthly Program Fee for an Embassy Suites By Hilton be changed?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We may change the Monthly Program Fee rate at any time. The Monthly Program Fee rate will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement. The Monthly Program Fee pays for various programs to benefit the System and/or the Network, including: (i) developing and maintaining the Reservation Service systems and support; (ii) developing and maintaining directories and Internet sites for System Hotels; (iii) advertising, promotion, publicity, public relations, market research, and other marketing programs; (iv) certain quality assurance programs; (v) certain technology programs; and (vi) administrative costs and overhead related to the administration or direction of these projects and programs. We may create or modify any programs and allocate monies derived from Monthly Program Fees to any regions or localities. The Monthly Program Fee does not cover your costs of participating in any optional marketing programs or other programs or services periodically offered by us or our affiliates in which you voluntarily choose to participate. These fees also do not cover the cost of operating the hotel in accordance with the Standards or the Manual.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Monthly Program Fee can be changed. The FDD states that Embassy Suites By Hilton may change the Monthly Program Fee rate at any time. However, the rate will not exceed the current rate plus 1% of Gross Rooms Revenue over the term of the Franchise Agreement.
The Monthly Program Fee covers various programs that benefit the Embassy Suites By Hilton system and/or the network. These programs include developing and maintaining reservation service systems and support, directories and internet sites for System Hotels, advertising, promotion, publicity, public relations, market research, and other marketing programs, certain quality assurance programs, certain technology programs, and administrative costs and overhead related to the administration or direction of these projects and programs.
Embassy Suites By Hilton may also create or modify any programs and allocate monies derived from Monthly Program Fees to any regions or localities. It is important to note that the Monthly Program Fee does not cover the costs of participating in any optional marketing programs or other programs or services periodically offered by Embassy Suites By Hilton or its affiliates in which the franchisee voluntarily chooses to participate. These fees also do not cover the cost of operating the hotel in accordance with the Standards or the Manual.