What is Embassy Suites required to do regarding communication vehicles and services for direct communication with HSS?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Whether Customer elects to purchase or lease Authorized Equipment from a Preferred Provider through one of the Master Agreements HSS will coordinate the installation of such Authorized Equipment at the Hotel.
- A.
Customer or HSS, in HSS's discretion, will obtain and maintain throughout the term hereof, at Customer's cost, the necessary communication vehicles and services for direct communication between HSS and the Hotel as is reasonably necessary for the operation of, and for the diagnosing of issues involving, the Agreement Products and Services, including without limitation, network access and wide area network connections to the Central Reservation System and Internet.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the franchisee, referred to as the Customer, is responsible for obtaining and maintaining the necessary communication vehicles and services for direct communication between HSS (presumably Hilton Hotel Systems or a related entity) and the hotel. This includes network access and wide area network connections to the Central Reservation System and the Internet. These communication services are deemed reasonably necessary for the operation and diagnosing of issues related to the Agreement Products and Services.
In practical terms, the Embassy Suites franchisee must ensure that the hotel has adequate internet and network infrastructure to communicate effectively with HSS. This infrastructure is crucial for the hotel's operations, including accessing the central reservation system and resolving any technical issues with the products and services provided under the franchise agreement. The franchisee bears the cost of these communication vehicles and services.
This requirement ensures that Embassy Suites hotels can maintain consistent communication with HSS for operational and technical support. It is a standard practice in franchising for franchisees to bear the costs of technology and communication infrastructure necessary to operate the business according to the franchisor's standards. Prospective franchisees should factor these ongoing technology costs into their financial projections.