What programs are the Monthly Program Fees for Embassy Suites By Hilton used to pay for?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4.2.2 developing and maintaining directories of and Internet sites for System Hotels and/or Network Hotels;
4.4.2.3 developing and maintaining the Reservation Service systems and support; and
4.4.2.4 administrative costs and overhead related to the administration or direction of these projects and programs.
4.4.3 We will have the sole right to determine how and when we spend these funds, including sole control over the creative concepts, materials and media used in the programs, the placement and allocation of advertising, and the selection of promotional programs.
4.4.4 We may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, and/or other services with any other entity, including any of our Affiliates or third parties.
4.4.5 You acknowledge that Monthly Program Fees are intended for the benefit of the System and the Network and will not simply be used to promote or benefit any one Network Hotel or market.
We will have no obligation in administering any activities paid for with the Monthly Program Fee to make expenditures for you that are equivalent or proportionate to your payments or to ensure that the Hotel benefits directly or proportionately from such expenditures.
- 4.4.6 We may create any programs and allocate monies derived from Monthly Program Fees to any regions or localities, as we consider appropriate in our sole business judgment.
The aggregate of Monthly Program Fees paid to us by System Hotels and/or Network Hotels does not constitute a trust or "advertising fund" and we are not a fiduciary with respect to the Monthly Program Fees paid by you and other System Hotels and/or other Network Hotels.
- 4.4.7 We are not obligated to expend funds in excess of the amounts received from System Hotels and/or Network Hotels.
If any interest is earned on unused Monthly Program Fees, we will use the interest before using the principal.
The Monthly Program Fee does not cover your costs of participating in any optional marketing programs and promotions offered by us in which you voluntarily choose to participate.
These Monthly Program Fees do not cover the cost of operating the Hotel in accordance with the Standards.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Monthly Program Fees are allocated to several key areas that support the brand and network. These include developing and maintaining directories and internet sites for System Hotels and/or Network Hotels, ensuring that potential customers can easily find and book accommodations. Additionally, the fees contribute to the development and maintenance of the Reservation Service systems and support, which are crucial for efficient booking processes and customer service. A portion of the fees also covers administrative costs and overhead related to the administration or direction of these projects and programs.
Embassy Suites By Hilton retains sole discretion over how and when these funds are spent, including control over creative concepts, materials, media, advertising placement, and promotional programs. This allows Embassy Suites By Hilton to adapt marketing strategies and allocate resources as they see fit. They may also enter into arrangements with affiliates or third parties for various functions such as development, marketing, operations, and technical support.
The FDD clarifies that the Monthly Program Fees are intended for the overall benefit of the System and the Network, not just individual hotels. Franchisees should understand that these fees do not guarantee direct or proportionate benefits to their specific hotel. Embassy Suites By Hilton can allocate funds to any regions or localities as deemed appropriate, and the aggregate of Monthly Program Fees does not constitute a trust or advertising fund. Any interest earned on unused Monthly Program Fees will be used before the principal. These fees also do not cover optional marketing programs or the costs of operating the hotel according to brand standards.