factual

How often must an Embassy Suites franchisee refresh the Guest Internet Access system?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

Guest Internet Access Refresh. You must refresh the Guest Internet Access system at least every 4 years. We may also require the Guest Internet Access system to be refreshed in connection with a Change of Ownership or Relicensing when a new franchise agreement is signed. We anticipate that cost of this to be the same or less than the cost of the original installation (but not including any elements that were needed for the original installation only).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to refresh the Guest Internet Access system at least every four years. Embassy Suites may also require a refresh of the Guest Internet Access system if there is a Change of Ownership or Relicensing when a new franchise agreement is signed. The FDD anticipates that the cost of the refresh will be the same or less than the original installation cost, excluding any elements needed only for the original installation.

This requirement ensures that all Embassy Suites hotels maintain a consistent and up-to-date technology standard for guest internet access. This is important for guest satisfaction, as reliable internet service is a key amenity for travelers. By mandating periodic refreshes, Embassy Suites aims to keep its hotels competitive and aligned with current technological standards.

For a prospective franchisee, this means planning for a significant expense every four years, in addition to the initial investment in the Guest Internet Access system. The initial estimated cost for Guest Internet Access hardware, software, and installation ranges from $84,519 to $123,517, excluding taxes and structured cable and cabling installation. While the refresh cost is anticipated to be the same or less, franchisees should budget accordingly to avoid unexpected financial strain. It is also important to note that these costs do not include the ongoing monthly expenses for the internet access circuit (estimated at $1,950 to $4,900 per month) and the Guest Internet Access service (estimated at $744 to $1,408 per month).

Prospective franchisees should inquire about the typical cost of a Guest Internet Access system refresh based on the size and location of the hotel to better prepare their financial forecasts. Understanding the specific components that need to be refreshed and any potential cost-saving measures can also help in managing this recurring expense.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.