How is the annual cost of software maintenance determined for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ta and other required materials necessary for HSS to reproduce any problem identified by Customer. Customer will maintain for the term of this Agreement a modem and dial-up telephone line and a facsimile machine or other electronic communication capability mutually acceptable to both parties to facilitate HSS's ability to perform its maintenance services remotely.
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- Expenses. Customer will pay for all telephone toll charges incurred in providing maintenance and support hereunder.
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- Proprietary Rights. Any changes, improvements, additions, and/or modifications to any of the Proprietary Software or PEP which are licensed by HSS to Customer, and all proprietary rights therein, including without limitation, all Intellectual Property Rights, will be HSS's sole and exclusive property, and
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the annual cost of software maintenance is initially listed as $%AnnualSWMaint%. This cost is paid in monthly installments of $%MonthlySWMaint%, calculated from the start date and billed by HSS (presumably Hilton Software Services). Payments are due in advance. Interest will be charged on late payments made more than thirty days after billing, at the highest rate allowed at the time.
HSS reserves the right to adjust the Proprietary Software Maintenance cost annually. These adjustments can reflect increases or decreases in HSS's internal costs, changes in costs from Preferred Providers, and to account for the addition or construction of more guest rooms or suites at the Embassy Suites By Hilton hotel.
Prospective Embassy Suites By Hilton franchisees should note that the initial placeholders for the annual and monthly software maintenance costs ($%AnnualSWMaint% and $%MonthlySWMaint%) indicate that these figures are variable and determined elsewhere in the agreement. Franchisees should carefully review the complete agreement and discuss these costs with HSS to understand the specific amounts applicable to their franchise and how these costs may change over time.