Can an Embassy Suites franchisee be required to purchase enhancements to the Proprietary Software and PEP separately?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer acknowledges and agrees that Customer may be required to purchase some enhancements, improvements, updates, and/or modifications to the Proprietary Software and PEP which Customer will be charged for separately by HSS, as well as additional hardware and/or software in order to utilize certain major upgrades or enhancements.
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 purchase certain enhancements, improvements, updates, or modifications to the Proprietary Software and PEP (Property Engagement Platform). These updates will be charged separately by HSS (Hilton Supply Management Services). Additionally, franchisees might need to acquire extra hardware or software to effectively utilize major upgrades or enhancements to the system.
This means that while Embassy Suites provides initial software and system access, franchisees should anticipate potential ongoing costs for keeping their systems up-to-date. These costs are in addition to the standard software maintenance fees. The FDD specifies that these changes and modifications to the software become the sole property of HSS.
Prospective Embassy Suites franchisees should budget for these potential additional technology costs and inquire about the frequency and estimated expenses of such upgrades. Understanding the long-term costs associated with software and system maintenance is crucial for assessing the overall financial viability of the franchise.