Who is responsible for the fees and costs associated with the Refresh of Authorized Equipment for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Under HSS's refreshment program, Customer will be responsible for and will pay for all fees and costs for the replacement or refreshment of the Authorized Equipment in HSS's sole discretion ("Refresh") on an approximate three (3) year cycle, starting approximately three (3) years after the initial shipment of such Authorized Equipment and for the provision of maintenance services by the Preferred Provider on such refreshed equipment.
Customer will be responsible for the fees and costs for installation services relative to Network Authorized Equipment as well as any Standard Plus Equipment. Under the terms and conditions of the Total Solution Program's Refreshment Program (the "Refreshment Program") of Network Authorized Equipment, HSS anticipates that Network Authorized Equipment will be replaced or refreshed in HSS's sole discretion (the "Refresh"), on an approximate three (3) year cycle, starting approximately three (3) years after the initial shipment of Network Authorized Equipment. HSS will be responsible for the fees and costs for installation services of Network Authorized Equipment on the date that such equipment is refreshed under the Refreshment Program. Customer's Refresh will be timed to occur prior to the end of the three (3) year cycle. If Customer fails to meet HSS's timeline for such Refresh, including order dates for equipment and software, Customer will be responsible for all fees and costs incident to such delay, including, but not limited to, rent extension costs on Network Authorized Equipment and higher fees and costs for equipment maintenance and software maintenance.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the franchisee, referred to as the Customer, is generally responsible for the fees and costs associated with the Refresh of Authorized Equipment. Specifically, the Customer will pay for the replacement or refreshment of the Authorized Equipment, which HSS determines at its sole discretion. This Refresh occurs approximately every three years, starting about three years after the initial equipment shipment.
Embassy Suites anticipates that Network Authorized Equipment will be replaced or refreshed in HSS's sole discretion on an approximate three-year cycle, starting approximately three years after the initial shipment of Network Authorized Equipment. However, HSS is responsible for the fees and costs for installation services of Network Authorized Equipment on the date that such equipment is refreshed under the Refreshment Program.
It is important to adhere to HSS's timeline for the Refresh. If the Customer fails to meet HSS's timeline, including order dates for equipment and software, the Customer will be responsible for all fees and costs incident to such delay. These costs may include rent extension costs on Network Authorized Equipment and higher fees and costs for equipment and software maintenance. This highlights the importance of proactive planning and timely execution in managing the equipment lifecycle to avoid incurring additional expenses.