factual

How often must an Embassy Suites By Hilton franchisee update or upgrade the OnQ system?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer from 2025 FDD Document

You must update and upgrade ("refresh") the OnQ system at least every 3 years, or such longer period as we may specify. We may also require you to refresh the OnQ system in connection with a Change of Ownership or Relicensing, when a new franchise agreement is signed. We anticipate the cost of this to be the same or less than the cost of the original installations (but not including any elements that were needed for the original installation only).

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, franchisees are required to update and upgrade, or "refresh," the OnQ system at least every 3 years. However, Embassy Suites By Hilton may specify a longer period between these updates. Additionally, the franchisor may require a refresh of the OnQ system when there is a Change of Ownership or Relicensing, or when a new franchise agreement is signed.

The FDD anticipates that the cost of these updates will be the same or less than the original installation costs. This excludes any elements that were exclusively needed for the initial setup. The OnQ system is crucial for connecting Embassy Suites By Hilton hotels to the brand's reservation offices and travel planners globally, encompassing various components such as reservations, property management, revenue management, and more.

For a prospective Embassy Suites By Hilton franchisee, this means budgeting for periodic technology updates is essential. While the frequency is set at a minimum of every three years, franchisees should be prepared for potential updates triggered by changes in ownership or relicensing. Understanding the costs associated with these updates, and factoring them into long-term financial planning, is a key consideration. Franchisees should also confirm with Embassy Suites By Hilton whether there are any anticipated changes to the update schedule or costs to ensure accurate financial forecasting.

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.