Can HSS terminate the Equipment License for an Embassy Suites location at any time?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
HSS may terminate the above Equipment License on the Network Authorized Equipment and all other obligations of HSS under this TSP Agreement at HSS's option: (a) Immediately without notice in event of breach of Customer's obligations or conditions set forth in Sections 2 and 3 above, or (b) at any time, with or without cause, upon not less than ninety (90) days advance written notice to Customer.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, HSS has the option to terminate the Equipment License for Network Authorized Equipment at any time, with or without cause, provided they give the franchisee at least ninety (90) days advance written notice. HSS can also terminate the Equipment License immediately without notice if the franchisee breaches their obligations or violates the conditions outlined in Sections 2 and 3 of the TSP Agreement.
These conditions include not being in default of any agreement with HDOC HSS or its affiliates, maintaining payments to HSS's Preferred Providers, ensuring the hotel remains an approved Hilton brand, executing the HITS Agreement, cooperating with HSS's Total Solution Program (including equipment refreshment), allowing equipment removal and replacement as determined by HSS, and completing any required hotel conversion or rebranding.
This termination clause gives HSS broad authority over the Equipment License. An Embassy Suites franchisee needs to understand that HSS can end the agreement with a 90-day notice for any reason. The franchisee must also adhere to all conditions and obligations to avoid immediate termination due to breach of contract. This includes keeping up with equipment upgrades and maintaining good standing with all related agreements and payments.