How often are the software maintenance payments for an Embassy Suites franchise due?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Cost and Payment Terms.
Annual Cost of Software Maintenance is $%AnnualSWMaint%.
Payments will be calculated from the Start Date, payable in monthly installments of $%MonthlySWMaint%.
The monthly payment amount will be due in advance and will be billed by HSS.
Interest at the then current highest rate allowed will be charged for any payments made by Customer after the payment due date (thirty (30) days after billing).
HSS reserves the right to increase or decrease the Software Maintenance cost on an annual basis to reflect increases or decreases in such cost internally and from the Preferred Providers of such services and to reflect the addition or construction of additional guest rooms
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the annual cost of software maintenance is payable in monthly installments. These monthly payments are calculated from the Start Date and are due in advance. HSS (presumably a Hilton affiliate or third-party vendor) will bill the franchisee for these monthly payments.
It's important to note that interest will be charged on any payments made after the due date, which is thirty days after billing. This highlights the importance of franchisees making timely payments to avoid incurring additional costs.
HSS retains the right to adjust the software maintenance cost annually, reflecting changes in their internal costs, costs from Preferred Providers, or due to the addition of guest rooms. This means that the franchisee should anticipate potential fluctuations in the monthly payment amount over the term of the franchise agreement.