What agreement governs an Embassy Suites franchisee's access to and use of OnQ?

According to the 2025 Embassy Suites Franchise Disclosure Document, the HITS (Hilton Information Technology Services) Agreement governs a franchisee's access to and use of OnQ, Hilton's proprietary computerized business system. This system is described as an integral part of the System that Embassy Suites licenses to its franchisees. The HITS Agreement also covers the installation, ongoing support, and maintenance of the Guest Internet Access.

Prospective Embassy Suites franchisees should note that they must sign the HITS Agreement, typically 90 to 120 days before the hotel opens, along with any other related agreements required by Embassy Suites. The franchisee is also responsible for purchasing certain software licenses, such as Windows Server operating systems, database applications, and virus detection and removal tools, often through existing enterprise agreements HSS (Hilton Supply Management) has with vendors like Microsoft. HSS will invoice the hotel for these purchases.

The FDD specifies that the cost for OnQ connectivity, billed by HSS, ranges from $400 to $600 per month, commencing when the hotel's internet access circuit is installed, approximately 45 days before opening. These fees are non-refundable as per the HITS Agreement. Furthermore, the HITS Agreement outlines fees related to start-up delays and rescheduling of Systems Implementation Consultants (SICs), which can amount to $700 per SIC per day for each additional day of delay, plus travel expenses, along with a $2,000 rescheduling fee plus additional travel expenses if rescheduling is necessary.

Therefore, understanding the terms and conditions of the HITS Agreement is crucial for any prospective Embassy Suites franchisee, as it dictates the costs, responsibilities, and potential penalties associated with the OnQ system and Guest Internet Access.