Who is responsible for the cost to configure equipment obtained by an Embassy Suites customer from a non-preferred retailer?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
C. If Customer purchases Authorized Equipment from a retailer other than the Preferred Provider, Customer will pay for configuring the Authorized Equipment purchased from such retailer, with the Software. Customer will also be responsible for shipping and shipping related costs to and from HSS for such configuration.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, if a franchisee chooses to purchase authorized equipment from a retailer other than the preferred provider, the franchisee is responsible for the costs associated with configuring that equipment with the necessary software. This means that Embassy Suites franchisees cannot expect the franchisor or preferred provider to cover these configuration expenses if they opt to source equipment independently.
In addition to covering the configuration costs, the franchisee is also responsible for the shipping costs to and from HSS (or its designee) for the configuration of the equipment. This includes all shipping-related expenses. This requirement ensures that all equipment, regardless of the source, meets Embassy Suites' standards and is properly integrated with their systems.
This policy incentivizes franchisees to purchase equipment from the preferred provider, as using the preferred provider includes software installation. It also ensures that even if franchisees choose an alternative vendor, they bear the financial responsibility of ensuring the equipment is correctly configured and meets Embassy Suites' standards. This protects the integrity and consistency of the brand's technology infrastructure across all franchise locations.