When are the OnQ Computer System Fees due for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
tes. Unless otherwise stated, these are not refundable under any circumstances.
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application Fee – Re-licensing | $100,000 | With Application. | See Note 1. |
| Property Improvement Plan ("PIP") Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS towards the payment of the Franchise Application Fee, but we are not obligated to do so. |
| Construction or Renovation Work Extension Fee | $10,000 | With written request for extension. | You must start and complete the construction work or renovation work at your Hotel by the dates specified in your Franchise Agreement. See Note 2. |
| Computer System Fees | |||
| OnQ Computer | Currently, between | As agreed. | See Note 3. |
| System Fees – | $70,576 | ||
| Hardware, Software | and | ||
| & Installation | $151,184. | ||
| 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. |
| Spa Services | |||
| Initial Fee | $25,000 | When you sign the Eforea Spa Amendment. | See Note 4. |
| Training | |||
| Training Program Fees | Currently, $5,000 to $17,500. | As agreed. | We provide required training programs and materials that your general manager and other personnel in key functions must complete before opening a new Brand hotel. We may charge you for the training services and materials, including any Pre Opening Training Resources. You must also bear the cost of wages, travel, lodging, food, and other expenses of your general manager and any other attendees. See Item 11 for details. |
| Miscellaneous Services and Programs | |||
| Opening Process Services Fee | $6,000 | Before opening. | This fee is to help recoup our costs in providing certain pre-opening services to help you open your Hotel, such as guidance with commercial planning, activation of appropriate programs, and tools and resources available to Brand hotels. |
| Procurement and Services Fees | Currently, 4% to 10% of project cost. | As agreed. | Payable if we or our affiliates furnish, supply, service or equip your Hotel at your request. These fees are in addition to the cost of the products acquired for you, plus freight, sales tax and other actual costs incurred. See Note 5. |
| Miscellaneous Services | As agreed. | As agreed. | We or our affiliates may periodically offer you additional services. These could include additional training for you |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS and your employees, assistance in recruiting various types of employees, and other services and programs. Most of these services and programs will be optional, but some, including systems upgrades and changes in System standards, which may require addition |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the OnQ Computer System Fees, which currently range from $70,576 to $151,184 for hardware, software, and installation, are due as agreed upon with Embassy Suites By Hilton. These fees are separate from other initial start-up fees, such as the GRO system, Digital Floor Plan, and Hilton Opening Transition Tool, which total $6,500 and are due as incurred before opening. Note 3 of Item 5 provides additional details regarding these fees.
Embassy Suites By Hilton requires franchisees to acquire and install hardware and software for several computer systems, including OnQ, Guest Internet Access, GRO, Delphi, Connected Room, Digital Floor Plan, Digital Key, and the Hilton Opening Transition Tool. While some initial set-up fees are paid to Hilton's affiliate, HSS, this is not the case for all systems. The OnQ system connects hotels to Hilton's reservation offices and travel planners and includes components for reservations, property management, revenue management, rate and inventory management, forecast management, and learning management.
The FDD specifies that franchisees may acquire OnQ hardware from HSS or preferred providers, or from other third-party vendors. However, the OnQ software components must be acquired from HSS or designated vendors due to their proprietary nature. The property management system component within OnQ is called HPMS (Hilton Property Management System) or PEP (Property Engagement Platform), developed in collaboration with HotelKey, Inc. The estimated cost range for the standard OnQ package from HSS includes hardware, software, installation, and other costs, varying based on hotel size and number of workstations. The FDD indicates that there is no separate third-party market for the OnQ system in its entirety, making it difficult to determine a separate market price.