What sections of the Embassy Suites By Hilton Franchise Agreement address fees?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
tes. Unless otherwise stated, these are not refundable under any circumstances.
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application Fee – Re-licensing | $100,000 | With Application. | See Note 1. |
| Property Improvement Plan ("PIP") Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS towards the payment of the Franchise Application Fee, but we are not obligated to do so. |
| Construction or Renovation Work Extension Fee | $10,000 | With written request for extension. | You must start and complete the construction work or renovation work at your Hotel by the dates specified in your Franchise Agreement. See Note 2. |
| Computer System Fees | |||
| OnQ Computer | Currently, between | As agreed. | See Note 3. |
| System Fees – | $70,576 | ||
| Hardware, Software | and | ||
| & Installation | $151,184. | ||
| Other Initial Start Up Fees | Currently, $6,500. | As incurred before opening. | This includes the initial set up fees for the GRO system, a Digital Floor Plan, and the Hilton Opening Transition Tool, which are separate from the OnQ system listed above. See Note 3. |
| Spa Services | |||
| Initial Fee | $25,000 | When you sign the Eforea Spa Amendment. | See Note 4. |
| Training | |||
| Training Program Fees | Currently, $5,000 to $17,500. | As agreed. | We provide required training programs and materials that your general manager and other personnel in key functions must complete before opening a new Brand hotel. We may charge you for the training services and materials, including any Pre Opening Training Resources. You must also bear the cost of wages, travel, lodging, food, and other expenses of your general manager and any other attendees. See Item 11 for details. |
| Miscellaneous Services and Programs | |||
| Opening Process Services Fee | $6,000 | Before opening. | This fee is to help recoup our costs in providing certain pre-opening services to help you open your Hotel, such as guidance with commercial planning, activation of appropriate programs, and tools and resources available to Brand hotels. |
| Procurement and Services Fees | Currently, 4% to 10% of project cost. | As agreed. | Payable if we or our affiliates furnish, supply, service or equip your Hotel at your request. These fees are in addition to the cost of the products acquired for you, plus freight, sales tax and other actual costs incurred. See Note 5. |
| Miscellaneous Services | As agreed. | As agreed. | We or our affiliates may periodically offer you additional services. These could include additional training for you |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS and your employees, assistance in recruiting various types of employees, and other services and programs. Most of these services and programs will be optional, but some, including systems upgrades and changes in System standards, which may require addition |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 50–52)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, Item 5 outlines the initial fees required to start an Embassy Suites By Hilton franchise. These fees vary depending on the type of franchise being pursued, whether it's a new development, conversion, change of ownership, or re-licensing. For instance, the Franchise Application Fee for a new development or conversion is $100,000, plus an additional $400 for each guest room or suite exceeding 250. A change of ownership has a flat Franchise Application Fee of $200,000, while re-licensing is $100,000. These fees are due with the application.
Additional fees include a Property Improvement Plan (PIP) Fee of $10,000, payable before the PIP inspection is scheduled. There are also Computer System Fees for the OnQ Computer system, ranging from $70,576 to $151,184, as well as other initial start-up fees of $6,500 for the GRO system, a Digital Floor Plan, and the Hilton Opening Transition Tool. If a franchisee wants to add a spa, the Initial Fee for Spa Services is $25,000 when signing the Eforea Spa Amendment. Training Program Fees range from $5,000 to $17,500, covering training programs and materials for the general manager and other key personnel.
Further fees include an Opening Process Services Fee of $6,000, which covers pre-opening services. Procurement and Services Fees range from 4% to 10% of the project cost if the franchisor or its affiliates furnish, supply, service, or equip the hotel at the franchisee's request. The document also mentions Miscellaneous Services, for which fees are agreed upon as needed for additional training, employee recruitment assistance, and other services and programs. It is important to note that some of these services and programs may be mandatory, such as system upgrades and changes in system standards, which may require additional training or participation in additional programs.