For Embassy Suites, what determines the Order Effective Date for the Order Document?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Order Effective Date for this Order Document is the date it is signed by HSS.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Order Effective Date for the Order Document is determined by the date that Hilton Systems Solutions, LLC (HSS) signs the document. This date marks when the agreement between HSS and the customer (prospective franchisee) officially takes effect.
This is important for prospective Embassy Suites franchisees because it establishes the start date for various obligations and services related to the Information Technology System Agreement. For instance, the annual fee for Proprietary Software and PEP maintenance commences on the Order Effective Date and is payable in monthly installments. Additionally, the purchasing and/or leasing fees for the Authorized Equipment described in Schedule B-1 – Authorized Equipment are determined as of the Order Effective Date.
Furthermore, the document specifies that the customer must have its representatives on-site at the hotel for the implementation of the Agreement Products and Services. Any delays caused by the customer after HSS representatives are on-site may result in additional expenses. The re-scheduled date will be determined based on the needs of the Hotel as well as the availability of HSS's representatives. Therefore, understanding the Order Effective Date is crucial for managing timelines and potential costs associated with the implementation of IT systems at the Embassy Suites hotel.