What is the dependency between the HITS Agreement and opening an Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide you with the HITS Agreement (which will be countersigned by HSS) before you open your Hotel.
The HITS Agreement governs your access to and use of OnQ, Hilton's proprietary computerized business system which is an integral part of the System we license to you (see Computer System below.) The HITS Agreement also governs the installation and on-going support and maintenance of your Guest Internet Access (HITS Agreement, Exhibit G).
About 90 to 120 days before your Hotel opens, you must sign the agreement for OnQ (HITS Agreement) and/or other related agreements we require, which will govern your access to and
use of the OnQ system. The current HITS Agreement is attached as Exhibit G. You must also purchase certain software licenses such as Windows Server operating systems and related client access licenses, database applications, and virus detection and removal tools. Where applicable, these licenses must be purchased through existing enterprise agreements HSS has in place with vendors such as Microsoft. HSS will invoice the Hotel for such purchases. You may purchase other software not covered by enterprise agreements from other third-party suppliers. Costs of these licenses may vary based on the number of users or computers at your Hotel and other factors.
OnQ Connectivity. The cost for OnQ connectivity is billed to you by HSS, and costs between $400 and $600 per month. Billing will begin when your Hotel's internet access circuit is installed, about 45 days before opening. These fees are not refundable (see HITS Agreement, Order Document Section 1.7).
Start-Up Delay and Rescheduling Fees. You must have one or more Systems Implementation Consultants ("SICs") on site for your Hotel's opening. HSS determines the number of SICs and the number of days they will be on site based on size and type of hotel. Any delays in opening will cost $700 per SIC per day for each additional day, plus the SICs' travel expenses. If the delay results in the departure and re-scheduling of the SICs' on-site service period, a $2,000 rescheduling fee would be charged plus the SICs' additional travel expenses. These fees are not refundable (see HITS Agreement, Order Document Sections 1.6 and 1.11).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, signing the HITS Agreement is a prerequisite to opening a hotel. The HITS Agreement, which will be countersigned by HSS, governs the franchisee's access to and use of OnQ, Hilton's proprietary computerized business system, which is integral to the Embassy Suites system. The HITS Agreement also covers the installation, ongoing support, and maintenance for Guest Internet Access. Franchisees must sign the HITS Agreement approximately 90 to 120 days before the hotel opens to ensure access to the OnQ system.
Delays in opening can result in significant fees. Embassy Suites requires Systems Implementation Consultants (SICs) to be on-site for the hotel's opening, with HSS determining the number of SICs and the duration of their stay based on the hotel's size and type. Any delays will incur a cost of $700 per SIC per day, in addition to their travel expenses. If a delay leads to the SICs leaving and needing to reschedule their on-site service, a $2,000 rescheduling fee will be charged, along with additional travel expenses for the SICs. These fees are non-refundable.
In addition to the HITS Agreement, franchisees must purchase certain software licenses, such as Windows Server operating systems, database applications, and virus detection and removal tools. These licenses, where applicable, must be purchased through existing enterprise agreements HSS has with vendors like Microsoft, and HSS will invoice the hotel for these purchases. The cost for OnQ connectivity, billed by HSS, ranges from $400 to $600 per month, starting when the hotel's internet access circuit is installed, approximately 45 days before opening. These fees are also non-refundable.