conditional

Under what condition is an initial fee due for an Embassy Suites By Hilton franchise?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The initial fee is due only if you are installing an eforea spa in your Hotel.
    1. The low estimate assumes you are not opening a spa. The high estimate includes the cost to build out and equip the spa to current eforea spa standards, whether you are installing an eforea spa or another spa concept. Costs may be greater for a Conversion hotel.

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, an initial fee is due if a franchisee is installing an eforea spa in their hotel. This fee, ranging from $0 to $25,000, is paid as a lump sum with the application. The high end estimate includes the cost to build out and equip the spa to current eforea spa standards, whether you are installing an eforea spa or another spa concept. Costs may be greater for a Conversion hotel.

In addition to the initial fee for the eforea spa, there are also additional funds required for eforea spa implementation, which can range from $0 to $4,950,000. These funds are paid as agreed upon and incurred with suppliers.

It is important to note that if a franchisee chooses not to install an eforea spa, the initial fee would be $0. However, if they decide to proceed with the spa, they should be prepared for the initial fee and the additional implementation costs, which can significantly increase the overall investment. Prospective franchisees should carefully consider whether to include a spa in their Embassy Suites By Hilton hotel, weighing the potential benefits against the additional financial commitment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.