Is an Embassy Suites customer responsible for personal property taxes associated with software licensed and equipment provided under the TSP Agreement?

According to the 2025 Embassy Suites Franchise Disclosure Document, as part of the Technology Services Program (TSP) Agreement, the customer (franchisee) is responsible for paying personal property taxes associated with the software licensed and equipment provided. This obligation is explicitly stated within the customer's responsibilities under the TSP Agreement.

In addition to personal property taxes, the franchisee is also responsible for paying any federal, state, and local sales, use, gross receipts, excise, or similar taxes related to payments made under the TSP Agreement. This means that franchisees need to budget for these ongoing tax obligations in addition to the standard franchise fees and other operational costs.

Furthermore, the franchisee must obtain and maintain current insurance on the Network Authorized Equipment against all risks, covering the approximate value of the equipment. They are also obligated to prevent any liens from being attached to the Network Authorized Equipment, preserve and protect the equipment from loss, damage, or theft, and ensure that no unauthorized backups are used with the Information System. These stipulations highlight the franchisee's responsibility for the proper care, maintenance, and financial obligations related to the technology and equipment provided under the TSP Agreement.