Who is responsible for the shipping costs associated with the certification of authorized equipment for an Embassy Suites franchise if purchased from a third party?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Authorized Equipment Purchase. Customer may purchase the Authorized Equipment from the Preferred Provider who may provide a joinder agreement with Customer or from another retailer; however, if such Authorized Equipment is obtained from another retailer, it must conform to HSS's specifications. Furthermore, if Customer elects to purchase such Authorized Equipment from a third party other than the Preferred Provider, the file server and work stations must be shipped to HSS or its designee for certification that these components comply with HSS's specifications and testing procedures. Customer will also be responsible for the shipping and shipping related costs to and from HSS or its designee for such certifications.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee chooses to purchase authorized equipment from a third-party retailer instead of the Preferred Provider, the franchisee is responsible for covering all shipping and related costs. This includes the expenses for shipping the equipment to HSS (Hilton Supply Management Services) or its designee for certification and the return shipping after the certification process is complete. The equipment must be certified to ensure it complies with HSS's specifications and testing procedures.
This requirement has significant cost implications for prospective Embassy Suites franchisees. Opting for a third-party vendor might seem like a way to save money initially, but the added shipping costs for certification can offset any potential savings. Franchisees need to factor in these shipping expenses when comparing prices between different equipment suppliers. Additionally, the time required for shipping and certification could potentially delay the installation and setup of the equipment, impacting the hotel's opening timeline or any planned upgrades.
It is important for franchisees to get a clear understanding of the certification process and associated shipping logistics. Franchisees should confirm the exact specifications and testing procedures required by HSS to ensure that the equipment purchased from a third party meets these standards. Furthermore, franchisees should obtain quotes for shipping and certification costs from HSS or its designee to accurately assess the financial impact of choosing a third-party vendor. This proactive approach will help franchisees make informed decisions and avoid unexpected expenses during the setup phase of their Embassy Suites franchise.