Who determines the timing of the Refresh for Authorized Equipment at Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Under HSS's refreshment program, Customer will be responsible for and will pay for all fees and costs for the replacement or refreshment of the Authorized Equipment in HSS's sole discretion ("Refresh") on an approximate three (3) year cycle, starting approximately three (3) years after the initial shipment of such Authorized Equipment and for the provision of maintenance services by the Preferred Provider on such refreshed equipment.
Customer's Refresh will be timed to occur prior to the end of the three (3) year cycle.
If Customer fails to meet HSS's timeline for such Refresh, including order dates for equipment and software, Customer will be responsible for all fees and costs incident to such delay, including, but not limited to, any rent extension costs on Network Authorized Equipment and higher fees and costs for equipment maintenance and software maintenance.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, HSS (presumably Hilton Supply Management or a related entity) has the sole discretion to determine the timing of the Refresh of Authorized Equipment. This Refresh, involving the replacement or refreshment of equipment, typically occurs on an approximate three-year cycle, beginning about three years after the initial equipment shipment.
The Embassy Suites By Hilton franchisee is responsible for covering all associated fees and costs. The franchisee's Refresh is scheduled to occur before the end of this three-year cycle. Should the franchisee fail to adhere to HSS's timeline, including equipment and software order dates, they will be responsible for all costs incurred due to the delay. These costs may include rent extension costs for Network Authorized Equipment and increased fees for equipment and software maintenance.
This arrangement means that Embassy Suites By Hilton franchisees must be prepared for periodic equipment upgrades dictated by HSS. Franchisees need to factor these refresh costs into their financial planning and ensure they can meet the specified timelines to avoid additional expenses. It is important for prospective franchisees to understand the typical costs associated with these refreshes and the potential financial impact of delays.