What taxes is an Embassy Suites customer responsible for paying under the TSP Agreement?

According to Embassy Suites's 2025 Franchise Disclosure Document, under the Total Solution Program (TSP) Agreement, the customer is responsible for specific taxes. The Embassy Suites customer must pay all federal, state, and local sales, use, gross receipts, excise, or similar taxes related to payments made under the TSP Agreement.

In addition to these taxes, the customer is also responsible for paying all personal property taxes associated with the software licensed and equipment provided under the TSP Agreement. This means that beyond the standard sales and usage taxes, the franchisee will also have to cover the annual taxes assessed on the value of the software and equipment used in the hotel's network system.

This obligation is clearly outlined in the agreement to ensure that all tax liabilities are properly allocated. Prospective Embassy Suites franchisees should factor these tax responsibilities into their financial planning and operating budget. Understanding these tax obligations is crucial for maintaining compliance and accurately forecasting expenses associated with the technology infrastructure provided under the TSP Agreement.