What happens if an Embassy Suites franchisee is late on a software maintenance payment?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Payments will be calculated from the Start Date, payable in monthly installments of $%MonthlySWMaint%.
The monthly payment amount will be due in advance and will be billed by HSS.
Interest at the then current highest rate allowed will be charged for any payments made by Customer after the payment due date (thirty (30) days after billing).
Travel expenses, per diem fees and related costs for any on-site maintenance will be billed separately.
If Customer fails to comply with the Information System use regulations, rules or policies, or is otherwise in default under this Agreement HSS may, in its sole discretion: (a) disable Customer's access to or use of all or any part of the Information System and suspend any part of the Services provided or supported under this Agreement and (b) suspend and withhold performance of HSS's obligations under this Agreement.
Customer will not be entitled to any compensation, refund or reduction in charges as a result of such action.
HSS may charge Customer for the cost relating to such disabling and suspending and, if Customer's defaults are cured as required, re-enabling such access and resuming such obligations, if any, together with related intervention or administration fees.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, if a franchisee makes a software maintenance payment after the due date, they will be charged interest. The interest rate will be the highest rate allowed at the time. The monthly payment is due in advance and will be billed by HSS. The payment due date is thirty (30) days after billing.
Embassy Suites also has the right to suspend services if the franchisee is in default of the agreement. This includes disabling the franchisee's access to the information system and suspending any services provided under the agreement. The franchisee will not be entitled to any compensation, refund, or reduction in charges as a result of such action.
Furthermore, Embassy Suites can charge the franchisee for the cost of disabling and suspending services, as well as re-enabling them if the defaults are cured. This includes related intervention or administration fees. These measures highlight the importance of timely payments and adherence to the franchise agreement to avoid potential disruptions and additional costs.