When is the Property Improvement Plan fee due for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| (Note 1) | Application | |||
| Property Improvement Plan Fee (Note 2) | $0 to $10,000 | Lump sum | Before we prepare PIP | Us |
| Market Study | Varies | As agreed | As incurred | Supplier |
| (Note 3) | ||||
| En |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Property Improvement Plan (PIP) fee, which ranges from $0 to $10,000, is due in a lump sum before Embassy Suites By Hilton prepares the PIP. This fee is applicable if you are converting an existing hotel to an Embassy Suites By Hilton or applying for a change of ownership or re-licensing. The PIP determines the upgrading requirements for the hotel to meet brand standards.
This fee covers the cost for Embassy Suites By Hilton to assess the existing property and determine what improvements are necessary to meet their brand standards. This assessment is crucial for conversions, re-licensing, or change of ownership, ensuring that all Embassy Suites By Hilton locations maintain a consistent level of quality and guest experience. The PIP helps to identify necessary upgrades to bring the hotel up to par.
Prospective franchisees should budget for this fee as part of their initial investment, particularly if they are considering converting an existing hotel. Understanding the timing of this payment is essential for managing cash flow during the initial stages of franchise acquisition. Franchisees should also inquire about the factors that influence the PIP fee amount to better prepare for this expense.