factual

How often will the Authorized Equipment be refreshed for Embassy Suites By Hilton?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer 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 the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Network Authorized Equipment will be replaced or refreshed approximately every three years. This refresh cycle begins roughly three years after the initial equipment shipment. However, the timing of the refresh is ultimately at HSS's discretion.

Embassy Suites By Hilton franchisees are responsible for all costs associated with the replacement or refreshment of the Authorized Equipment. The franchisee's refresh is timed to occur before the end of the three-year cycle. If a franchisee fails to meet HSS's timeline for the refresh, including order dates for equipment and software, they will be responsible for all fees and costs related to the delay. These costs may include rent extension costs on Network Authorized Equipment and higher fees for equipment and software maintenance.

This refresh program ensures that Embassy Suites By Hilton properties maintain up-to-date technology and equipment, which can enhance the guest experience. However, it also represents a recurring expense for the franchisee. Franchisees should budget for these periodic equipment refreshes to avoid any disruptions or unexpected costs. It is important to maintain open communication with HSS to stay informed about the refresh schedule and associated requirements.

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.