How is the annual cost of software maintenance determined for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e and/or software in order to utilize certain major upgrades or enhancements.
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- Cooperation. Customer will provide HSS with all information, data and other required materials necessary for HSS to reproduce any problem identified by Customer. Customer will maintain for the term of this Agreement a modem and dial-up telephone line and a facsimile machine or other electronic communication capability mutually acceptable to both parties to facilitate HSS's ability to perform its maintenance services remotely.
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- Expenses. Customer will pay for all telephone toll charges incurred in providing maintenance and support hereunder.
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- Proprietary Rights. Any changes, improvements, additions, and/or modifications to any of the Proprietary Software or PEP which are licen
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the annual cost of software maintenance is initially listed as $%AnnualSWMaint%. This cost is paid in monthly installments of $%MonthlySWMaint%, with payments calculated from the Start Date and billed by HSS (presumably a third-party vendor). These monthly payments are due in advance. Late payments are subject to interest charges at the highest rate allowed at the time, beginning 30 days after billing. Travel expenses, per diem fees, and related costs for any on-site maintenance are billed separately.
Embassy Suites, through HSS, retains the right to adjust the Proprietary Software Maintenance cost annually. These adjustments can reflect increases or decreases in HSS's internal costs, changes in costs from Preferred Providers, and to account for any additional guest rooms (or suites) added to the hotel. This means a franchisee's software maintenance costs can fluctuate based on several factors outside of their direct control, including the performance and pricing of third-party vendors.
It is important to note that HSS has no obligation to provide maintenance, support, or Help Desk services for any Certified Third Party Software; maintenance support and services for Certified Third Party Software is to be provided by the applicable Preferred Provider pursuant to the applicable Master Agreement. Furthermore, if a franchisee uses any non-certified third-party software on the Authorized Equipment, HSS is relieved of its obligation to provide Proprietary Software Maintenance services. Franchisees may be required to purchase some Updates to the Proprietary Software and PEP, which are charged for separately by HSS, as well as additional hardware and/or software in order to utilize certain major upgrades or enhancements.
Prospective Embassy Suites franchisees should carefully consider these factors and inquire about the typical range of annual software maintenance costs, the frequency and magnitude of potential cost adjustments, and the specific terms and conditions of third-party software maintenance agreements to fully understand their financial obligations and operational responsibilities.