For Embassy Suites, can HSS increase or decrease the Proprietary Software Maintenance cost?

According to Embassy Suites's 2025 Franchise Disclosure Document, HSS has the right to adjust the Proprietary Software Maintenance cost annually. This adjustment can reflect both increases and decreases in HSS's internal costs or those from preferred providers. Additionally, the cost may change based on any additions or construction of new guest rooms (or suites) at the Embassy Suites hotel.

For a prospective Embassy Suites franchisee, this means the annual software maintenance costs are not fixed and can fluctuate. Factors influencing these costs include HSS's operational expenses, changes in vendor pricing, and any expansion of the hotel's capacity through the addition of guest rooms. It is important to note that these adjustments are made at HSS's discretion.

This flexibility in pricing allows HSS to adapt to changing market conditions and operational costs. However, it also introduces a degree of uncertainty for the franchisee, who must budget for potential increases in this expense. Franchisees should discuss with Embassy Suites what typical factors have caused these increases or decreases in the past to better forecast future expenses.

It is fairly common in the franchise industry for franchisors to retain the right to modify fees to adapt to market conditions or changes in service offerings. Franchisees should carefully review the terms and conditions related to software maintenance and understand the potential for cost adjustments over the term of their franchise agreement.