Who is responsible for missing, bad, or damaged equipment for an Embassy Suites location?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Pay for any and all de-installation, transportation and disposal costs of any Network Authorized Equipment currently being used by Customer's Hotel on its Network at the time of installation by HSS or HSS's designee of the Network Authorized Equipment under the Refreshment program. HSS or HSS's designee, at HSS's expense, will provide for de-installation, transportation and disposal of any such Network Authorized Equipment then being used by Customer's Hotel at the time of the installation of Network Authorized Equipment under the Refreshment Program, but it is Customer's responsibility to handle the return to Customer's lessor of all such de-installed equipment in accordance with Customer's current lease terms. Customer will be solely responsible for any missing, bad or damaged equipment.
- (f) Preserve and protect the Network Authorized Equipment from loss, damage or theft.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the customer, or franchisee, is solely responsible for any missing, bad, or damaged equipment. This responsibility falls under the Technology Support Program (TSP) Agreement, specifically concerning Network Authorized Equipment.
This means that if equipment is lost, damaged, or in poor condition, the franchisee bears the full financial burden for its replacement or repair. This is a significant responsibility, as it requires the franchisee to implement robust security and maintenance protocols to protect the equipment. Franchisees must also obtain and maintain current insurance on the Network Authorized Equipment against all risks for the approximate value of the Network Authorized Equipment.
Furthermore, the franchisee is obligated to preserve and protect the Network Authorized Equipment from loss, damage, or theft. This includes ensuring the equipment is used and maintained properly, and that adequate security measures are in place to prevent theft or damage. This allocation of responsibility is fairly standard in franchising, where franchisees typically manage the day-to-day operations and are accountable for the assets used in their business. However, the specific terms and extent of this responsibility can vary, so prospective Embassy Suites franchisees should carefully review the TSP Agreement and insurance requirements.
In addition to being responsible for the equipment, the franchisee is also responsible for paying any and all de-installation, transportation, and disposal costs of any Network Authorized Equipment currently being used by Customer's Hotel on its Network at the time of installation by HSS or HSS's designee of the Network Authorized Equipment under the Refreshment program.