What section of the Embassy Suites By Hilton franchise agreement discusses the payment of fees?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
d, or changed by us.
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- Additional Operational and Other Requirements.
- (a) Subsection 5.1.1 of the Franchise Agreement is deleted and replaced with the following:
- 5.1.1 after the Opening Date, operate the Hotel twenty-four (24) hours a day; provided, however, you will operate the eforea spa for those days of the week and hours of the day that we may periodically establish;
- (b) Subsection 5.1.27 of the Franchise Agreement is amended by deleting the word "and" after the semicolon,
- (c) Subsection 5.1.28 of the Franchise Agreement is amended by changing the period to a semicolon and adding the following subparagraphs:
- 5.1.29 the Opening Date for the eforea spa must be within twelve (12) months of the Effective Date of the eforea Amendment;
- 5.1.30 after the Opening Date, operate the eforea spa for those days of the week and hours of the day as we may establish;
- 5.1.31 you must display all material, including brochures and promotional materials we provide for eforea
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the franchise agreement outlines fees associated with an eforea spa in Section 7. This section specifies additional fees beyond those in the standard franchise agreement.
Specifically, if a franchisee chooses to operate an eforea spa, they must pay an initial fee of $25,000 upon executing the amendment to the franchise agreement. This initial fee is non-refundable and is considered earned by Embassy Suites By Hilton upon payment.
In addition to the initial fee, franchisees must also pay a spa royalty fee equal to 2% of their Gross Spa Revenue. This royalty fee is added to the Monthly Royalty Fee but is only calculated based on Gross Spa Revenue. The FDD states that Embassy Suites By Hilton has all rights related to this fee as set forth in the Franchise Agreement related to the Monthly Royalty Fee, and this fee is in addition to any other fees set forth in the Franchise Agreement.