Are the software license fees for Embassy Suites By Hilton subject to change?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the brand provides some details regarding potential changes to software maintenance costs, but not the initial license fees. Specifically, Embassy Suites By Hilton reserves the right to adjust the Proprietary Software Maintenance cost annually. These adjustments can reflect increases or decreases in Embassy Suites By Hilton's costs, as well as any changes due to the addition or construction of more guest rooms at the franchisee's hotel.

This policy means that while the initial software license fee for the Hilton Property Engagement Platform (PEP) may be fixed based on the number of guest rooms at the time of purchase, the ongoing maintenance costs can fluctuate. Factors influencing these changes include Embassy Suites By Hilton's operational expenses and any expansion of the hotel by the franchisee. For example, if a franchisee adds more guest rooms, the annual maintenance cost could increase to align with the expanded operation.

It is important to note that these changes apply specifically to the Proprietary Software Maintenance costs and not necessarily to the Certified Third Party Software. The FDD states that Embassy Suites By Hilton is unable to modify or provide support for the Certified Third Party Software, implying that any changes to those fees or services would be managed by the applicable Preferred Provider. Prospective franchisees should clarify with Embassy Suites By Hilton and the Preferred Providers the terms and conditions related to potential changes in fees for both Proprietary Software and Certified Third Party Software to fully understand the financial implications.