On what date are Embassy Suites By Hilton's Maintenance Fees subject to change?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, HSS reserves the right to adjust the Proprietary Software Maintenance cost annually. These adjustments can reflect increases or decreases in HSS's costs, as well as changes due to the addition or construction of more guest rooms or suites at the franchisee's hotel. This means that the maintenance fees are not fixed and can fluctuate based on these factors.

For a prospective Embassy Suites By Hilton franchisee, this implies that budgeting for software maintenance must account for potential yearly changes. Factors such as inflation affecting HSS's operational costs or any expansion of the hotel's capacity could lead to changes in these fees. It is important to note that these adjustments are at HSS's discretion, providing them with the flexibility to respond to market conditions and the franchisee's specific circumstances.

This type of clause is relatively common in franchise agreements, as it allows the franchisor to maintain profitability and adapt to changing economic conditions. However, it also introduces an element of uncertainty for the franchisee. Therefore, it would be prudent for a potential Embassy Suites By Hilton franchisee to discuss with HSS the typical range of these annual adjustments and the factors that most commonly trigger an increase in maintenance fees. Understanding these aspects can help in better financial planning and risk management.