Under the Embassy Suites By Hilton agreement, can fees be changed?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
f Agreement.** You must satisfy all of the terms and conditions of this Agreement, and equip, supply, and otherwise make the Hotel ready to open under our Standards. As a result of your efforts to comply with the terms and conditions of this Agreement, you will incur significant expense and expend substantial time and effort. You acknowledge and agree that we will have no liability or obligation to you for any losses, obligations, liabilities or expenses you incur if we do not authorize the Hotel to open or if we terminate this Agreement because you have not complied with the terms and conditions of this Agreement.
6.6 Hotel Refurbishment and Room Addition.
- 6.6.1 We may periodically require you to modernize, rehabilitate and/or upgrade the Hotel's [INSERT FOR EY, PE, RU: Package, fixtures, equipment, furnishings, finishes, furniture, signs, computer hardware and software and related equipment, supplies and other items to meet the then-current Standards. You will make these changes at your sole cost and expense and in the time frame we require.
- 6.6.2 You may not make any significant changes (including major changes in structure, design or décor) in the Hotel. [INSERT FOR EY, PE, RU: As long as they do not change or affect Package requirements, **[m/M]**inor redecoration and minor structural changes that comply with our Standards will not be considered significant.
- **6.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
Based on the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the franchisor has the right to periodically require franchisees to modernize, rehabilitate, and/or upgrade various aspects of the hotel to meet the then-current standards. These changes, which can include fixtures, equipment, furnishings, furniture, signs, computer hardware and software, and related items, are to be made at the franchisee's sole cost and expense within a timeframe specified by Embassy Suites By Hilton.
Embassy Suites By Hilton also requires that franchisees obtain consent and pay a Room Addition Fee if they wish to add additional guest rooms after the opening date. As a condition of approving such additions, Embassy Suites By Hilton may require franchisees to modernize, rehabilitate, or upgrade the hotel according to the standards outlined in the agreement. Additionally, franchisees may be required to pay a then-current PIP Fee to prepare a Property Improvement Plan (PIP) to determine the specific renovation requirements for the hotel.
Furthermore, if a franchisee plans to offer securities and uses the Embassy Suites By Hilton marks or refers to the franchise agreement in their offering, Embassy Suites By Hilton requires the submission of all offering materials for review at least 60 days before distribution or filing with any governmental agency. A non-refundable processing fee of $5,000 is required with the offering documents, and the franchisee must also cover any additional costs incurred by Embassy Suites By Hilton for reviewing these documents, including reasonable attorney's fees. This ensures that Embassy Suites By Hilton maintains control over how its brand is represented in financial offerings and that franchisees bear the costs associated with this oversight.