How is the annual cost of software maintenance determined for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Cost and Payment Terms.
Annual Cost of Software Maintenance is $%AnnualSWMaint%.
Payments will be calculated from the Start Date, payable in monthly installments of $%MonthlySWMaint%.
The monthly payment amount will be due in advance and will be billed by HSS.
Interest at the then current highest rate allowed will be charged for any payments made by Customer after the payment due date (thirty (30) days after billing).
Travel expenses, per diem fees and related costs for any on-site maintenance will be billed separately.
HSS reserves the right to increase or decrease the Software Maintenance cost on an annual basis to reflect increases or decreases in such cost internally and from the Preferred Providers of such services and to reflect the addition or construction of additional guest rooms
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the annual cost of software maintenance is a specified dollar amount, represented as $%AnnualSWMaint%. This cost is paid in monthly installments, each amounting to $%MonthlySWMaint%. These payments are calculated from the 'Start Date,' which is the date of shipment of the authorized equipment, and are due in advance, billed monthly by HSS (presumably a Hilton-approved vendor). Late payments are subject to interest charges at the highest rate allowed at the time.
Embassy Suites franchisees should note that HSS retains the right to adjust the software maintenance cost annually. These adjustments can reflect changes in HSS's internal costs, fluctuations in costs from preferred providers, or modifications due to the addition or construction of more guest rooms at the hotel. This means the initial quoted cost may not remain constant throughout the franchise term, and franchisees need to budget for potential increases.
Furthermore, the FDD stipulates that HSS has no obligation to provide maintenance, support, or help desk services for any Certified Third Party Software. Support for such software must be obtained directly from the applicable Preferred Provider under their Master Agreement. Additionally, if a franchisee uses any unauthorized third-party software on the authorized equipment, HSS is relieved of its maintenance obligations for the Proprietary Software. This highlights the importance of adhering to approved software to ensure continued support and avoid potential disruptions.