Under the HITS Agreement, what obligations must an Embassy Suites customer perform?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Customer's Obligations. Customer will:
- (a) Perform all of its obligations under the HITS Agreement, including, but not limited to, the maintenance of the Network Authorized Equipment using the designated Preferred Provider for HSS's TSP.
- (b) Obtain and keep current insurance on the Network Authorized Equipment against all risks for the approximate value of the Network Authorized Equipment.
- (c) Pay any and all federal, state and local sales, use, gross receipts, excise or similar taxes incident to the payments under this TSP Agreement. Customer agrees to pay all personal property taxes associated with software licensed and equipment provided under the TSP Agreement.
- (d) Prevent any liens from attaching to the Network Authorized Equipment.
- (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.
- (g) Not use any unauthorized backup in connection with the Information System.
(h) Make no unapproved repairs nor perform any unauthorized service to the Network Authorized Equipment.
(i) Not allow any other equipment or software to be added to the Information System without prior specific written permission of HSS.
(j) Allow the removal and future refreshment of Network Authorized Equipment at such time and in such manner as may be determined by HSS in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the customer (franchisee) has several obligations under the HITS (Hilton Information Technology Standard) Agreement. These obligations are detailed within the context of the Total Solution Program (TSP) Agreement, as the HITS Agreement and TSP Agreement are closely linked.
Under the HITS Agreement, the Embassy Suites franchisee must maintain the Network Authorized Equipment using the designated Preferred Provider for HSS's TSP. They are also required to obtain and maintain current insurance on the Network Authorized Equipment against all risks, covering the equipment's approximate value. The franchisee is responsible for paying all applicable federal, state, and local sales, use, gross receipts, excise, or similar taxes related to payments under the TSP Agreement, as well as all personal property taxes associated with the software licensed and equipment provided.
Additionally, the Embassy Suites franchisee must prevent any liens from being attached to the Network Authorized Equipment and cover all costs associated with the de-installation, transportation, and disposal of any Network Authorized Equipment being used at the time of installation under the Refreshment program. They must also preserve and protect the Network Authorized Equipment from loss, damage, or theft, and refrain from using any unauthorized backup in connection with the Information System. The franchisee cannot make unapproved repairs or perform unauthorized service to the Network Authorized Equipment, nor can they allow any other equipment or software to be added to the Information System without prior written permission from HSS. Finally, they must allow the removal and future refreshment of Network Authorized Equipment as determined by HSS.