factual

For an Embassy Suites By Hilton franchise, is equipment maintenance provided for the franchisee's hotel?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer from 2025 FDD Document

ations to provide any Proprietary Software Maintenance services to Customer.

  • 2.3 Increases/Decreases. HSS reserves the right to increase or decrease the Proprietary Software Maintenance cost on an annual basis to reflect increases or decreases in such costs and the addition or construction of additional guest rooms (or suites) by Customer for Customer's Hotel.

3. Additional Services.

  • 3.1 Additional Services Purchased Under This Ordering Document. HSS will provide the following additional Services (if any are listed) for the fees noted (if any):
  • A. Guest Messaging Service. HSS will provide the Guest Messaging Service described in Schedule P – Guest Messaging Service.

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4. Authorized Equipment.

4.1 Authorized Equipment Purchased or Leased. Customer will purchase or lease the Authorized Equipment required for the proper operation of the Hotel IT functionality identified by HSS. As of the Order Effective Date the purchasing and/or leasing fees for the Authorized Equipment described in Schedule B-1 – Authorized Equipment are:

AUTHORIZED EQUIPMENT

NETWORK AUTHORIZED EQUIPMENT:

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STANDARD PLUS EQUIPMENT:

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The purchase fees will be invoiced by either HSS or the relevant Preferred Provider depending on the location of the Hotel and the source of the Authorized Equipment. Customer will be provided the specific information not later than 15 days following the Order Effective Date. Customer will purchase and replace any source, paper, ribbons, printer maintenance kits, toner and such other operating supplies as will be required for the operation of the Authorized Equipment, but Customer will utilize only such brands as are approved by HSS or the Authorized Equipment manufacturer.

4.2. Authorized Equipment Maintenance. Customer must purchase maintenance services as described in Schedule B-2 – Authorized Equipment Maintenance and Refresh for all of the Authorized Equipment it purchases or leases, including for all the Network Authorized Equipment when maintenance is not provided under the terms of the applicable Brand IT program. The fee for Authorized Equipment Maintenance includes a fee for Help Desk Services. As of the Order Effective Date Customer is purchasing Authorized Equipment Maintenance for the annual fee(s) shown, payable in monthly installments:

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  • 5. Expenses. If HSS or Preferred Provider personnel incur travel, lodging, meal, or any other out of pocket expenses in furnishing services hereunder, Customer will pay for or promptly reimburse HSS for same, subject to reasonable documentation of such expenses.
  • 6. Customer Responsibilities. Customer will maintain on its staff at all times sufficient personnel that have been trained in and are knowledgeable about the use of the Information System in a professional, efficient and competent manner. Customer is responsible for maintaining duplicate or back-up copies of its software, data files and documentation. HSS will have no liability for any damages resulting from Customer's failure to maintain such duplicate or back-up copies nor for any costs or expenses of reconstructing any such data or information that may be destroyed, impaired or lost.
  • 7. Exclusions. HSS's obligations under the Agreement will not apply to any errors, defects or problems caused in whole or in part by (i) any modifications or enhancements made to any Proprietary Software, Certified Third Party Software or Authorized Equipment by Customer or any third person or entity other than HSS;

Source: Item 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, franchisees are responsible for securing maintenance services for the 'Authorized Equipment' they purchase or lease for their hotel's IT functionality. Franchisees can either use Hilton's preferred maintenance company or, with Hilton's prior written approval, opt out of maintenance services for specific pieces of authorized equipment, which are then designated as 'Non-maintained Equipment.' No maintenance fees are charged for Non-maintained Equipment.

If a franchisee chooses to use the Preferred Provider for equipment maintenance, they must notify Hilton, who will then dispatch a representative from the Preferred Provider. The franchisee will be responsible for paying the Maintenance Fees as outlined in Schedule B-2 of the franchise agreement, including any late charges. These Maintenance Fees are subject to change by Hilton on January 1 of each year, but Hilton assures that franchisees will not be charged more than similarly situated customers using substantially similar equipment under similar agreements.

Embassy Suites By Hilton also has a refreshment program where franchisees are responsible for the costs of replacing or refreshing the Authorized Equipment, typically on a three-year cycle. The terms and conditions for maintenance services on refreshed equipment remain the same as in Schedule B-2. If a franchisee delays the refreshment timeline, they may incur additional costs, such as rent extension fees or higher maintenance fees. If the franchise agreement is terminated before the third anniversary of the equipment's shipment date, the franchisee may have to pay a termination fee to reimburse Hilton or the Preferred Provider for costs related to the start-up and provision of maintenance services. For example, a $3,600 termination fee applies if termination occurs during the first year following the start date.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.