What is the penalty for late payments made by an Embassy Suites customer for software maintenance?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
des or enhancements.
-
- Cooperation. Customer will provide HSS with all information, data and other required materials necessary for HSS to reproduce any problem identified by Customer. Customer will maintain for the term of this Agreement a modem and dial-up telephone line and a facsimile machine or other electronic communication capab
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, payments for software maintenance are due in advance and billed monthly by HSS. If a customer makes a payment after the due date, which is thirty days after billing, they will be charged interest. The interest rate will be the highest rate allowed at the time.
This means that as an Embassy Suites franchisee, you must ensure timely payments for software maintenance to avoid incurring interest charges. The specific interest rate is not defined in the FDD, but it is tied to the highest rate legally permissible at the time of the late payment.
Franchisees should be aware of this policy and budget accordingly to avoid late fees. It is also important to note that HSS reserves the right to increase or decrease the software maintenance cost annually, which could affect the monthly payment amount. Franchisees should clarify with Embassy Suites what the 'highest rate allowed' is in their specific state to fully understand the potential penalty for late payments.