What are Embassy Suites franchisees required to use for the OnQ system?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e components of each are described below, and the cost estimates are based on a standard prototype Brand hotel.
The OnQ System
OnQ Hardware and Software. You must use authorized hardware and the required software for the OnQ system. You may acquire the authorized hardware from HSS or its preferred providers, or you may purchase or lease it through other third-party providers. If you acquire the hardware from another (non-preferred) third party, you must also pay HSS for its reasonable expenses in determining that it conforms to our specifications. You must also pay for all necessary communications vehicles for OnQ (wide area network connections, electronic mail, and Internet connections), along with the installation and configuration 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, installation and certain other costs and fees, and is based on the size of the hotel and number of workstations. These fees are not refundable.
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 ot
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 must use authorized hardware and the required software for the OnQ system. Franchisees can acquire the authorized hardware from HSS or its preferred providers, or they may purchase or lease it through other third-party providers. However, if the hardware is acquired from a non-preferred third party, HSS must assess its conformity to specifications, and the franchisee will bear the reasonable expenses of this assessment.
The property management system component within OnQ is called the Hilton Property Management System (HPMS), also referred to as the Property Engagement Platform (PEP®). Franchisees are required to license the HPMS software from HSS, as HSS is the only supplier due to its proprietary nature. The cost for standard hardware and software purchased from HSS is estimated to be between $70,576 and $151,184, depending on the hotel size and number of workstations. These fees are non-refundable.
Embassy Suites franchisees must also pay for all necessary communications vehicles for OnQ, such as wide area network connections, electronic mail, and Internet connections, including the installation and configuration costs, and travel expenses for the employees and vendors performing these services. Additionally, franchisees are required to sign the HITS Agreement about 90 to 120 days before the hotel opens, which governs access to and use of the OnQ system. Franchisees must also purchase certain software licenses, such as Windows Server operating systems, database applications, and virus detection and removal tools, often through existing enterprise agreements HSS has with vendors like Microsoft.