When is the cost of training invoiced to an Embassy Suites customer?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Cost of Training and Training Materials. The cost of the training is shown below. This cost will be invoiced to Customer by HSS or the third party provider HSS may use at the same time as it renders its invoice to Customer for the License Fees. Additional costs for training replacement general managers or other hotel personnel will be invoiced to Customer prior to such training dates. Customer will be responsible for charges incurred for use of Virtual Private Network ("VPN") to access the training hotel. These costs include fees from HSS's current VPN access provider, for up to 5,000 minutes of network access as well as HSS internal costs for configuration services. VPN access will be terminated for each property at the time of hotel opening or live utilization of the Information System.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the cost of training is invoiced to the customer by HSS or a third-party provider at the same time as the license fees. However, additional costs for training replacement general managers or other hotel personnel will be invoiced prior to the training dates. The customer is also responsible for charges incurred for using a Virtual Private Network (VPN) to access the training hotel, which includes fees from HSS's VPN access provider for up to 5,000 minutes of network access and HSS's internal configuration service costs. VPN access will be terminated when the hotel opens or begins live utilization of the Information System.
For a prospective Embassy Suites franchisee, this means that the initial training costs will be billed concurrently with the license fees, which could impact the initial investment and cash flow planning. It is important to note that any subsequent training for replacement personnel will be invoiced in advance, requiring franchisees to budget and plan accordingly. The additional VPN access fees, while potentially minor, should also be considered as part of the overall training expenses.
It is also important to note that the FDD mentions that HSS may use a third party provider for training. It would be prudent for a prospective franchisee to confirm who the training provider is and what their payment terms are. Understanding these costs and payment schedules is crucial for managing the financial aspects of setting up and running an Embassy Suites franchise.