factual

Is an Embassy Suites customer required to execute a separate license agreement with third-party software providers for Certified Third Party Software not licensed from HSS?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2.1.1 Customer may be required to execute a separate license agreement directly with one or more third party software providers in connection with Certified Third Party Software not licensed from HSS and such Certified Third Party Software will be licensed on the terms and conditions set out in such separate license agreement.

Source: Item 23 — RECEIPTS (FDD pages 97–305)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees may be required to enter into separate license agreements with third-party software providers for Certified Third Party Software that is not licensed directly from HSS (presumably Hilton Software Services). This means that if Embassy Suites franchisees use certain software that isn't provided by HSS, they will need to establish a direct licensing relationship with the company that created the software. These agreements would be separate from the franchise agreement with Embassy Suites.

These separate license agreements will be governed by the specific terms and conditions set forth in those agreements, not the franchise agreement. Therefore, franchisees must carefully review these third-party agreements to understand their rights, obligations, and any restrictions on software usage.

This requirement is fairly common in franchising, as franchisors often integrate third-party software into their systems but do not necessarily act as the direct licensor for all software components. It is important for prospective Embassy Suites franchisees to determine which Certified Third Party Software they will need, whether it is licensed through HSS or directly from a third party, and to factor in the time and potential legal costs of reviewing and negotiating these separate license agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.