How often will Embassy Suites be responsible for the Refresh of Authorized Equipment?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms and conditions of the Total Solution Program's Refreshment Program (the "Refreshment Program") of Network Authorized Equipment, HSS anticipates that Network Authorized Equipment will be replaced or refreshed in HSS's sole discretion (the "Refresh"), on an approximate three (3) year cycle, starting approximately three (3) years after the initial shipment of Network Authorized Equipment. HSS will be responsible for the fees and costs for installation services of Network Authorized Equipment on the date that such equipment is refreshed under the Refreshment Program. Customer's Refresh will be timed to occur prior to the end of the three (3) year cycle. If Customer fails to meet HSS's timeline for such Refresh, including order dates for equipment and software, Customer will be responsible for all fees and costs incident to such delay, including, but not limited to, rent extension costs on Network Authorized Equipment and higher fees and costs for equipment maintenance and software maintenance.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites, through HSS, anticipates refreshing Network Authorized Equipment approximately every three years. This refresh cycle begins about three years after the initial equipment shipment. Embassy Suites is responsible for the fees and costs associated with the installation services of the Network Authorized Equipment when it is refreshed under the Refreshment Program.
However, the timing of the Refresh is subject to Embassy Suites's discretion, and the franchisee's Refresh is timed to occur before the end of the three-year cycle. If a franchisee fails to meet Embassy Suites's timeline for the Refresh, including adhering to order dates for equipment and software, the franchisee will be responsible for all fees and costs incurred due to the delay. These costs may include rent extension costs for Network Authorized Equipment and higher fees for equipment and software maintenance.
In practical terms, this means that while Embassy Suites covers the installation costs during the refresh, the franchisee is responsible for the initial installation costs and must adhere to the refresh timeline set by Embassy Suites to avoid additional expenses. This arrangement ensures that the Network Authorized Equipment remains up-to-date, but it also places the onus on the franchisee to manage the refresh process diligently to control costs.