For Embassy Suites By Hilton, when is the Letter Agreement deemed to have been automatically amended?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
This Letter Agreement ("Letter Agreement") confirms your request to purchase, lease, use, license or sublicense ("Acquire") additional software and/or services in order to add options, features and/or systems ("Additions") to the Information System, and will constitute an amendment to the existing Hilton Information Technology System Agreement previously entered into between ("Customer") and Hilton Systems Solutions, LLC ("HSS") dated (the "Agreement").
It is agreed that you will Acquire the Additions and that you will be billed by HSS or the applicable vendor for the Additions, as listed below. The effective date of billing on the new items will be the date the equipment is shipped, the date upon which you Acquire the Additions, and/or the date upon which you request the Additions, whichever is earliest.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Letter Agreement for Embassy Suites By Hilton confirms a customer's request to acquire additional software and/or services to enhance the Information System. Upon the customer's request to purchase, lease, use, license, or sublicense additional software, the Letter Agreement automatically amends the existing Hilton Information Technology System Agreement between the customer and Hilton Systems Solutions, LLC (HSS).
The effective date for billing on these new items is determined by whichever event occurs earliest: the date the equipment is shipped, the date the customer acquires the additions, or the date the customer requests the additions. This means that billing for the new software or services could begin as soon as the equipment is shipped, even before it is installed or actively used.
Prospective Embassy Suites By Hilton franchisees should note that they will be responsible for the costs associated with these additions from the earliest of these dates. It is important to carefully consider the timing of equipment shipments and requests for additions to manage billing effectively. Franchisees should also ensure they understand the terms and conditions of the Hilton Information Technology System Agreement and how it is amended by the Letter Agreement to avoid unexpected costs or obligations.