What agreement must Embassy Suites By Hilton execute contemporaneously with the TSP Agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Customer executes the HITS Agreement contemporaneously with this TSP Agreement.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, a franchisee must execute the HITS Agreement contemporaneously with the Total Solution Program Agreement (TSP Agreement). This is a condition for receiving benefits and fulfilling obligations under the TSP Agreement.
This requirement means that as part of entering into the TSP Agreement, which outlines the terms for Hilton Systems Solutions, LLC (HSS) providing certain benefits to the franchisee's hotel under the Total Solution Program, the franchisee must also simultaneously enter into the Information Technology Systems Agreement (HITS Agreement) with HSS. This ensures that the franchisee is aligned with HSS's technology systems and standards right from the start of the TSP.
The FDD also states that any default by the customer under the TSP Agreement will constitute a default under the HITS Agreement, and vice versa. This interconnectedness highlights the importance of fulfilling the obligations under both agreements to maintain good standing with Embassy Suites By Hilton. A prospective franchisee should carefully review both the TSP Agreement and the HITS Agreement to fully understand their obligations and the potential consequences of default.