Can HSS delegate its operational responsibilities under the HITS Agreement for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement ("FA"), Spa Amendment and HITS Agreement | Summary |
|---|---|---|
| return all copies of the eforea spa Manual, cancel all assumed | ||
| name or equivalent registrations and transfer any domain name | ||
| listings and registrations that contain any reference to the eforea | ||
| name to us, and cease representing yourself or the hotel as then | ||
| or formerly operating an eforea spa. | ||
| HITS Agreement 4.2 | You must stop using our software and related documents, return | |
| all copies to us, and certify to us that you have done so. | ||
| j. Assignment of contract by us | FA §12.1 | We may assign or transfer the Franchise Agreement and any of our rights, duties or assets to any person or entity without your consent so long as the assignee assumes all of our obligations to permit you to operate the Hotel. |
| HITS Agreement 2.1 | HSS may delegate its operational responsibilities under the | |
| HITS Agreement to third parties but remains responsible. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, HSS (presumably Hilton Supply Management Services) is permitted to delegate its operational responsibilities under the HITS (Hilton Inventory Tracking System) Agreement to third parties. However, HSS remains responsible for these delegated responsibilities.
This means that while another entity might handle the day-to-day operations related to the HITS Agreement, HSS is ultimately accountable for ensuring those responsibilities are properly fulfilled. For an Embassy Suites franchisee, this indicates that while the operational aspects of the HITS system might be managed by a third party, the franchisee can still rely on HSS to address any issues or concerns related to the system's operation.
This delegation does not relieve HSS of its obligations, offering a level of assurance to the franchisee. It's a common practice in franchising for franchisors to outsource certain functions while retaining overall responsibility, allowing them to leverage specialized expertise or achieve economies of scale. The franchisee should confirm with Embassy Suites what specific operational responsibilities are typically delegated and what mechanisms are in place to ensure HSS remains accountable for the third party's performance.