From whom must Embassy Suites franchisees license the HPMS software?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
figuration costs, and travel and other expenses of the employees and vendors who perform the installation and configuration services.
The property management system component within the OnQ system is called the Hilton Property Management System ("HPMS"). HPMS may also be referred to as the Property Engagement Platform ("PEP®"). You are required to license the HPMS software from our affiliate, HSS. HSS is the only supplier of the HPMS software because of its proprietary nature. We are not able to determine a separate market price because there is no third-party market for this product in its entirety. You must pay for the reasonable travel and other expenses of HSS employees and vendors who install and maintain the software. If you purchase the standard hardware and software from HSS, we estimate it will cost between $70,576 and $151,184. This includes hardware, software, installat
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, franchisees are required to license the Hilton Property Management System (HPMS) software from HSS, which is an affiliate of the franchisor. The FDD specifies that HSS is the only supplier of the HPMS software due to its proprietary nature. This means that franchisees do not have the option to choose an alternative provider for this particular software.
The FDD states that there is no separate market price for the HPMS software because there is no third-party market for the product in its entirety. In addition to licensing the software, franchisees are responsible for covering the reasonable travel and other expenses incurred by HSS employees and vendors for the installation and maintenance of the software.
The cost for the standard hardware and software package from HSS is estimated to be between $70,576 and $151,184. This estimate encompasses hardware, software, installation, and other associated costs and fees, and the final amount depends on the size of the hotel and the number of workstations. These fees are non-refundable. Franchisees must also sign the agreement for OnQ (HITS Agreement) approximately 90 to 120 days before the hotel opens, which governs access to and use of the OnQ system.