When are the 'Other Initial Start Up Fees' incurred for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Other Initial Start Up Fees | Currently, $6,500. | As incurred before opening. | This includes the initial set up fees for the GRO system, a Digital Floor Plan, and the Hilton Opening Transition Tool, which are separate from the OnQ system listed above. See Note 3. |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the "Other Initial Start Up Fees," currently $6,500, are incurred as they are accrued before the hotel opens. These fees cover the initial setup for the GRO system, a Digital Floor Plan, and the Hilton Opening Transition Tool, which are separate from the OnQ system.
The GRO (Global Revenue Optimization) system is an online application using third-party software to provide pricing recommendations for the hotel based on data analytics and forecasting. While franchisees are not required to adopt these pricing recommendations, the initial setup costs are part of the "Other Initial Start Up Fees." Additionally, franchisees must pay for the preparation of a Digital Floor Plan, which HSS (an affiliate) will have prepared by a local vendor. This floor plan is used by Hilton and Hilton Honors to allow guests to choose their room and enable digital check-in.
Prospective franchisees should note that these fees are in addition to other initial fees, such as the Franchise Application Fee, Property Improvement Plan (PIP) Fee, and Computer System Fees. Understanding when these fees are incurred is crucial for budgeting and financial planning before opening an Embassy Suites By Hilton franchise.