Why is the customer entering into the agreement described in the recitals for the Embassy Suites hotel?

According to the 2025 Embassy Suites Franchise Disclosure Document, the customer, who is a party to a management and/or franchise agreement with an affiliate of Hilton Systems Solutions (HSS) for the Embassy Suites hotel, is entering into the Information Technology System Agreement to obtain and use specific information technology (IT) products, services, and systems for the hotel. This agreement is crucial for the hotel's operations, ensuring it has the necessary technology infrastructure to meet brand standards and customer expectations.

This agreement encompasses all attachments, exhibits, schedules, and order documents, integrating them by reference. This comprehensive approach ensures that all aspects of the IT systems are covered under a single agreement, providing clarity and consistency in the services provided. The agreement specifies that Hilton Systems Solutions, LLC (HSS) and the franchisee (%LegalEntity%), referred to as the "Customer", are the parties involved.

For a prospective Embassy Suites franchisee, this means that securing this IT agreement is a necessary step to ensure the hotel can operate with the required technology. It highlights the importance of maintaining a good relationship with HSS and its affiliates, as any defaults on other agreements could impact the franchisee's ability to receive the IT services. The franchisee should carefully review the terms and conditions to understand their obligations and the potential consequences of non-compliance.