From whom must an Embassy Suites By Hilton franchisee license the HPMS software?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
figuration costs, and travel and other expenses of the employees and vendors who perform the installation and configuration services.
The property management system component within the OnQ system is called the Hilton Property Management System ("HPMS"). HPMS may also be referred to as the Property Engagement Platform ("PEP®"). You are required to license the HPMS software from our affiliate, HSS. HSS is the only supplier of the HPMS software because of its proprietary nature. We are not able to determine a separate market price because there is no third-party market for this product in its entirety. You must pay for the reasonable travel and other expenses of HSS employees and vendors who install and maintain the software. If you purchase the standard hardware and software from HSS, we estimate it will cost between $70,576 and $151,184. This includes hardware, software, installation and certain other costs and fees, and is based on the size of the hotel and number of workstations. These fees are not refundable.
About 90 to 120 days before your Hotel opens, you must sign the agreement for OnQ (HITS Agreement) and/or other related agreements we require, which will govern your access to and use of the OnQ system. The current HITS Agreement is attached as Exhibit G. You must also purchase certain software licenses such as Windows Server operating systems and related client access licenses, database applications, and virus detection and removal tools. Where applicable, these licenses must be purchased through existing enterprise agreements HSS has in place with vendors such as Microsoft. HSS will invoice the Hotel for such purchases. You may purchase other software not covered by enterprise agreements from other third-party suppliers. Costs of these licenses may vary based on the number of users or computers at your Hotel and other factors.
OnQ Connectivity. The cost for OnQ connectivity is billed to you by HSS, and costs between $400 and $600 per month. Billing will begin when your Hotel's internet acce
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, franchisees are required to license the Hilton Property Management System (HPMS) software from HSS, which is an affiliate of the franchisor. The FDD specifies that HSS is the only supplier of the HPMS software due to its proprietary nature, meaning franchisees do not have a choice of vendors for this particular software.
The cost for the standard hardware and software from HSS is estimated to be between $70,576 and $151,184. This figure includes hardware, software, installation, and certain other costs and fees, with the final amount depending on the size of the hotel and the number of workstations required. These fees are non-refundable, so franchisees should carefully consider their needs before making this purchase.
In addition to the HPMS software, franchisees must also purchase certain software licenses like Windows Server operating systems, database applications, and virus detection and removal tools. Where applicable, these licenses must be purchased through existing enterprise agreements that HSS has with vendors like Microsoft, with HSS invoicing the hotel for these purchases. For other software not covered by these agreements, franchisees may purchase from third-party suppliers. The cost of these licenses can vary based on the number of users or computers at the hotel and other factors. The OnQ connectivity, which is also billed to the franchisee by HSS, costs between $400 and $600 per month, starting when the hotel's internet access circuit is installed, approximately 45 days before opening. These fees are also non-refundable.