When is the payment due for the Computer Hardware and Software Systems for an Embassy Suites franchise, and to whom is it paid?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
IMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| ( |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the cost for computer hardware and software systems ranges from $77,071 to $157,679. Payment is due 45 days before opening. The payment can be made either as a lump sum or as required, and it is payable to either Embassy Suites (referred to as "Us" in the document) or a designated supplier.
These systems include the OnQ system, GRO system, Delphi Sales and Events system, Connected Room system, a Digital Floor Plan, the Digital Key system, and the Hilton Opening Transition Tool. The FDD notes that the amounts listed in Item 7 may differ from those in Item 5 because Item 7 includes costs payable to third parties.
Prospective franchisees should confirm with Embassy Suites which specific systems require payment to the franchisor versus directly to suppliers. Understanding the payment schedule and the recipients is crucial for managing cash flow during the pre-opening phase. Franchisees should also clarify whether the lump sum payment option offers any discounts compared to paying as required.