When are the Training Program Fees due for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 expe |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Training Program Fees, which currently range from $5,000 to $17,500, are due 'As agreed.' This means the specific payment schedule for these fees is determined on a case-by-case basis between Embassy Suites By Hilton and the franchisee. These fees cover the required training programs and materials that the general manager and other key personnel must complete before opening a new Embassy Suites By Hilton hotel.
In addition to the training program fees, the franchisee is also responsible for covering the costs of wages, travel, lodging, food, and other expenses for their general manager and any other personnel attending the training. This can add a significant expense to the initial investment, as it includes not only the direct fees paid to Embassy Suites By Hilton but also the indirect costs associated with employee training.
Prospective franchisees should clarify the payment terms for the Training Program Fees with Embassy Suites By Hilton during their due diligence. Understanding when these fees are due and payable is crucial for budgeting and financial planning. Additionally, franchisees should inquire about the specific training requirements, the number of personnel required to attend, and estimated costs for travel and lodging to accurately assess the total investment required for training.