Are the OnQ connectivity fees refundable for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
er third-party suppliers. Costs of these licenses may vary based on the number of users or computers at your Hotel and other factors.
OnQ Connectivity. The cost for OnQ connectivity is billed to you by HSS, and costs between $400 and $600 per month. Billing will begin when your Hotel's internet acce
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the OnQ connectivity fees are not refundable. These fees, which range from $400 to $600 per month, are billed to the franchisee by HSS (Hilton Supply Management). Billing commences once the hotel's internet access circuit is installed, approximately 45 days before the hotel's opening.
This non-refundable aspect of the OnQ connectivity fees means that an Embassy Suites By Hilton franchisee will not be able to recover these costs, even if there are delays in the hotel opening or if the services are not fully utilized. It is important for prospective franchisees to factor these ongoing costs into their financial projections and to understand the terms and conditions outlined in the HITS Agreement, which governs the use of the OnQ system.
Franchisees should carefully review the HITS Agreement and related documents to fully understand the obligations and costs associated with the OnQ system. Understanding the non-refundable nature of these fees is crucial for accurate financial planning and risk assessment before investing in an Embassy Suites By Hilton franchise.