Who is responsible for paying the personal property taxes associated with software licensed and equipment provided under the TSP Agreement for an Embassy Suites franchise?

According to Embassy Suites's 2025 Franchise Disclosure Document, the franchisee, referred to as the "Customer" in the Technology Services Program (TSP) Agreement, is responsible for paying personal property taxes associated with software licensed and equipment provided under the TSP Agreement. This obligation is explicitly outlined within the customer's responsibilities under the agreement.

This means that as an Embassy Suites franchisee, you will need to budget for and pay any personal property taxes levied on the software and equipment provided to you as part of the franchise's technology infrastructure. These taxes can vary depending on the location of your hotel and the specific tax laws of that jurisdiction. It is important to consult with a tax professional to understand the potential tax implications and ensure compliance with all applicable regulations.

This requirement is fairly standard in franchising, where franchisees typically bear the costs associated with operating their business, including taxes on assets used in the operation. Failing to pay these taxes could result in penalties or legal issues, so it's crucial to manage this responsibility diligently. The TSP Agreement ensures that the franchisee understands and accepts this financial obligation as part of their agreement with Embassy Suites.