What is the basis for calculating the OnQ Email Fees for an Embassy Suites By Hilton?

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Accepted Answer

id in full, either in advance or with the next installment due.

**ITEM 6 OTHER FEES**

| TYPE OF FEE                                                           | AMOUNT                                                                                                                                                                                                        | DUE DATE                                                      | REMARKS                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| General |  |  |  |
| Monthly Royalty Fee – New Development or Conversion | 3.5% of Gross Rooms Revenue during 1st year of operation; 4.5% of Gross Rooms Revenue during 2nd year of operation; and 5.5% of Gross Rooms Revenue for the remainder of the Term. | Payable monthly by the 15th day of the following month. | See Note 1. |
| Monthly Royalty Fee – Change of Ownership or Re licensing | 5.5% of Gross Rooms Revenue. | Payable monthly by the 15th day of the following month. | See Note 1. |
| Monthly Spa Royalty Fee | 2% of Gross Spa Revenue. | Payable monthly by the 15th day of the following month. | Payable only if Eforea Spa Amendment is in effect. See Note 1. |
| Monthly Program Fee | 4% of Gross Rooms Revenue. | Payable monthly by the 15th day of the following month. | We can change the Monthly Program Fee. See Notes 1 and 2. |
| Room Addition Fee | Currently, \$400 per guest room or suite, multiplied by the number of additional guest rooms/suites. | Due with Application for approval. | If you add or construct additional guest rooms at the Hotel at any time after you open the Hotel under the Brand, you must pay us a Room Addition Fee and sign an amendment to the Franchise Agreement. The fee is non refundable once we approve your Application. |
| Property Improvement Plan ("PIP") Fee | Currently, \$10,000. | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel, as well as any Room Addition or renovation project in which a PIP is |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|  |  |  | required. In some circumstances we may waive the PIP fee, but we are not obligated to do so. |
| Computer System Fees |  |  |  |
| OnQ Connectivity Fees | Currently, between \$400 and \$600 per month. | Billed monthly. | Fee is determined by the number of workstations and other OnQ equipment at your Hotel. |
| Hardware and Software Maintenance Support Fees | Currently, \$1,735 to \$4,128 per month. | Billed monthly by the 15th day of the following month. | This covers the OnQ hardware and software maintenance that is provided by us. This does not cover the maintenance of certain other hardware and software that is provided by vendors. See Item 11 for details. |
| OnQ Email Fees. | Currently, \$7.92 per user per month and \$12.50 per month for delivery to mobile devices. | Billed quarterly. | You must have at least 3 accounts. |
| Connected Room Maintenance Fees | Currently, \$721 to \$1,062 per month. | Billed monthly by the 15th day of the following month. | See Item 11 for details. |
| Delphi Sales and Events System | Currently, \$858 per user per year. Guest Assistance and Quality Assurance Programs | Billed annually. | These license and maintenance fees are paid to HSS, which are passed through to the vendor less a mark-up to recover certain costs. See Item 11 for details. |
| Guest Assistance Program: Customer Satisfaction Guarantee | Currently, \$300 per handled transaction for Hilton Honors Diamond members, \$250 per handled transaction for Hilton Honors Gold members, and \$200 per handled transaction for all other guests. | Within 48 hours of receipt of invoice. | Payable to resolve guest complaints. Our Guest Assistance Agent may offer the guest a refund (up to the full cost of the customer's stay), complimentary return stay or Hilton Honors points to resolve the complaint to the customer's satisfaction. You are billed the cost of the rebate plus the handling fee. We may change the maximum guest rebate amount or increase the handling fee. |
| Guest Assistance Program: Price Match Guarantee | Hotels must honor a 25% discount off the lower rate on all approved claims. | When the stay is consumed. | The discount applies if a guest finds a lower qualifying rate for a qualified booking at your Hotel. After the Guest Assistance Department confirms the lower rate is available for booking through a third-party channel, the claim is approved and the rate is adjusted. |
| Plans and Designs Late Fee | Currently, \$5,000 every 90 days. | Within 10 days of billing. | Payable if you do not submit acceptable Plans and Designs (as required in your Franchise Agreement, a PIP, FRCM renovation, or as otherwise required in accordance with the Standards) |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS by the applicable due dates, and every 90 days thereafter until acceptable Plans and Designs are submitted to us. See Note 3 |
| Brand Non Compliance Fee | Currently, \$65 to \$145 per approved guest room. | Within 10 days of billing. | Payable for each consecutive Unacceptable grade on a quality assurance evaluation. This fee varies based on the nature, frequency, and circumstances of the Hotel's deficiencies. This fee is capped at a maximum of \$50,000 in each 6-month period as set forth in the Standards. See Note 3. |
| Brand Non Compliance Re Evaluation Fee | Currently, up to \$4,500. | Within 10 days of billing. | Payable for: (a) each consecutive quality assurance evaluation that we conduct to verify that the Hotel's deficiencies that were identified in the prior quality assurance evaluation have been resolved (other than a Special, described below); or (b) any no-show, cancellation, or refusal by you to cooperate with a scheduled quality assurance evaluation or re evaluation. This fee is based on the number of available guest rooms in your Hotel, up to the maximum amount shown here. See Note 3. |
| Brand Non Compliance Special Audit Fee | Currently, \$5,500 per Special Audit. | Within 10 days of billing. | Payable each time we conduct a special on-site Quality Assurance evaluation ("Special Audit" or "Special"). We may conduct a Special: (a) to verify a default has been cured; (b) if your Hotel fails its opening inspection; or (c) if your Hotel fails its previous Special. See Note 3. |
| PIP/Renovation Failure Fee | Currently, \$10,000 every 6 months. | Within 10 days of billing. | Payable if you do not properly complete the required construction or renovation work at your Hotel (as set forth in a PIP, FRCM renovation, or as otherwise required in accordance with the Standards) by the applicable completion dates and every 6 months thereafter until the work is properly completed. See Note 3. |
| Stay Score Failure Fee | Currently, up to \$300 per guest room or 0.5% of GRR annually. | Within 10 days of billing. | Payable if your Hotel does not meet the minimum required service Stay Score under the Standards. Stay Scores are currently assessed at least twice per year. See Notes 1 and 3. |
| Service Quality | Currently, \$20,000 to | Within 10 days of | If your Hotel falls below our minimum |
| Improvement | \$50,000 for each 6- | billing. | service quality Standards for 6 |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
| Program | month period in the program. |  | months or more, we may require you to participate in our Service Quality Improvement Program until the deficiencies are resolved. The fee varies based on the nature, frequency, and circumstances of the Hotel's deficiencies, and is payable as long as your Hotel remains in this improvement program. See Notes 3 and 4. |
| Conferences and Training |  |  |  |
| Brand Conference | Currently, \$2,500 per attendee. | Before attendance. | Your general manager and director of sales (or equivalent) must attend the Brand conference, usually held annually. Dates,

Source: Item 6 — OTHER FEES (FDD pages 27–41)

What is the basis for calculating the OnQ Email Fees for an Embassy Suites By Hilton?

Answer from 2025 FDD Document

What This Means (2025 FDD)

TYPE OF FEE	AMOUNT	DUE DATE	REMARKS
General
Monthly Royalty Fee – New Development or Conversion	3.5% of Gross Rooms Revenue during 1st year of operation; 4.5% of Gross Rooms Revenue during 2nd year of operation; and 5.5% of Gross Rooms Revenue for the remainder of the Term.	Payable monthly by the 15th day of the following month.	See Note 1.
Monthly Royalty Fee – Change of Ownership or Re licensing	5.5% of Gross Rooms Revenue.	Payable monthly by the 15th day of the following month.	See Note 1.
Monthly Spa Royalty Fee	2% of Gross Spa Revenue.	Payable monthly by the 15th day of the following month.	Payable only if Eforea Spa Amendment is in effect. See Note 1.
Monthly Program Fee	4% of Gross Rooms Revenue.	Payable monthly by the 15th day of the following month.	We can change the Monthly Program Fee. See Notes 1 and 2.
Room Addition Fee	Currently, $400 per guest room or suite, multiplied by the number of additional guest rooms/suites.	Due with Application for approval.	If you add or construct additional guest rooms at the Hotel at any time after you open the Hotel under the Brand, you must pay us a Room Addition Fee and sign an amendment to the Franchise Agreement. The fee is non refundable once we approve your Application.
Property Improvement Plan ("PIP") Fee	Currently, $10,000.	Before PIP inspection is scheduled.	Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel, as well as any Room Addition or renovation project in which a PIP is
TYPE OF FEE	AMOUNT	DUE DATE	REMARKS
			required. In some circumstances we may waive the PIP fee, but we are not obligated to do so.
Computer System Fees
OnQ Connectivity Fees	Currently, between $400 and $600 per month.	Billed monthly.	Fee is determined by the number of workstations and other OnQ equipment at your Hotel.
Hardware and Software Maintenance Support Fees	Currently, $1,735 to $4,128 per month.	Billed monthly by the 15th day of the following month.	This covers the OnQ hardware and software maintenance that is provided by us. This does not cover the maintenance of certain other hardware and software that is provided by vendors. See Item 11 for details.
OnQ Email Fees.	Currently, $7.92 per user per month and $12.50 per month for delivery to mobile devices.	Billed quarterly.	You must have at least 3 accounts.
Connected Room Maintenance Fees	Currently, $721 to $1,062 per month.	Billed monthly by the 15th day of the following month.	See Item 11 for details.
Delphi Sales and Events System	Currently, $858 per user per year. Guest Assistance and Quality Assurance Programs	Billed annually.	These license and maintenance fees are paid to HSS, which are passed through to the vendor less a mark-up to recover certain costs. See Item 11 for details.
Guest Assistance Program: Customer Satisfaction Guarantee	Currently, $300 per handled transaction for Hilton Honors Diamond members, $250 per handled transaction for Hilton Honors Gold members, and $200 per handled transaction for all other guests.	Within 48 hours of receipt of invoice.	Payable to resolve guest complaints. Our Guest Assistance Agent may offer the guest a refund (up to the full cost of the customer's stay), complimentary return stay or Hilton Honors points to resolve the complaint to the customer's satisfaction. You are billed the cost of the rebate plus the handling fee. We may change the maximum guest rebate amount or increase the handling fee.
Guest Assistance Program: Price Match Guarantee	Hotels must honor a 25% discount off the lower rate on all approved claims.	When the stay is consumed.	The discount applies if a guest finds a lower qualifying rate for a qualified booking at your Hotel. After the Guest Assistance Department confirms the lower rate is available for booking through a third-party channel, the claim is approved and the rate is adjusted.
Plans and Designs Late Fee	Currently, $5,000 every 90 days.	Within 10 days of billing.	Payable if you do not submit acceptable Plans and Designs (as required in your Franchise Agreement, a PIP, FRCM renovation, or as otherwise required in accordance with the Standards)
TYPE OF FEE	AMOUNT	DUE DATE	REMARKS by the applicable due dates, and every 90 days thereafter until acceptable Plans and Designs are submitted to us. See Note 3
Brand Non Compliance Fee	Currently, $65 to $145 per approved guest room.	Within 10 days of billing.	Payable for each consecutive Unacceptable grade on a quality assurance evaluation. This fee varies based on the nature, frequency, and circumstances of the Hotel's deficiencies. This fee is capped at a maximum of $50,000 in each 6-month period as set forth in the Standards. See Note 3.
Brand Non Compliance Re Evaluation Fee	Currently, up to $4,500.	Within 10 days of billing.	Payable for: (a) each consecutive quality assurance evaluation that we conduct to verify that the Hotel's deficiencies that were identified in the prior quality assurance evaluation have been resolved (other than a Special, described below); or (b) any no-show, cancellation, or refusal by you to cooperate with a scheduled quality assurance evaluation or re evaluation. This fee is based on the number of available guest rooms in your Hotel, up to the maximum amount shown here. See Note 3.
Brand Non Compliance Special Audit Fee	Currently, $5,500 per Special Audit.	Within 10 days of billing.	Payable each time we conduct a special on-site Quality Assurance evaluation ("Special Audit" or "Special"). We may conduct a Special: (a) to verify a default has been cured; (b) if your Hotel fails its opening inspection; or (c) if your Hotel fails its previous Special. See Note 3.
PIP/Renovation Failure Fee	Currently, $10,000 every 6 months.	Within 10 days of billing.	Payable if you do not properly complete the required construction or renovation work at your Hotel (as set forth in a PIP, FRCM renovation, or as otherwise required in accordance with the Standards) by the applicable completion dates and every 6 months thereafter until the work is properly completed. See Note 3.
Stay Score Failure Fee	Currently, up to $300 per guest room or 0.5% of GRR annually.	Within 10 days of billing.	Payable if your Hotel does not meet the minimum required service Stay Score under the Standards. Stay Scores are currently assessed at least twice per year. See Notes 1 and 3.
Service Quality	Currently, $20,000 to	Within 10 days of	If your Hotel falls below our minimum
Improvement	$50,000 for each 6-	billing.	service quality Standards for 6
TYPE OF FEE	AMOUNT	DUE DATE	REMARKS
Program	month period in the program.		months or more, we may require you to participate in our Service Quality Improvement Program until the deficiencies are resolved. The fee varies based on the nature, frequency, and circumstances of the Hotel's deficiencies, and is payable as long as your Hotel remains in this improvement program. See Notes 3 and 4.
Conferences and Training
Brand Conference	Currently, $2,500 per attendee.	Before attendance.	Your general manager and director of sales (or equivalent) must attend the Brand conference, usually held annually. Dates,