What software licenses are Embassy Suites By Hilton franchisees required to purchase?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
You must also purchase certain software licenses such as Windows Server operating systems and related client access licenses, database applications, and virus detection and removal tools. Where applicable, these licenses must be purchased through existing enterprise agreements HSS has in place with vendors such as Microsoft. HSS will invoice the Hotel for such purchases. You may purchase other software not covered by enterprise agreements from other third-party suppliers. Costs of these licenses may vary based on the number of users or computers at your Hotel and other factors.
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 FDD, franchisees are required to purchase specific software licenses for the OnQ system. These include Windows Server operating systems, related client access licenses, database applications, and virus detection and removal tools. These licenses, where applicable, must be purchased through existing enterprise agreements that HSS (Hilton Supply Management) has with vendors like Microsoft. HSS will then invoice the hotel for these purchases.
While franchisees must acquire these specific licenses through HSS's existing agreements, they have the option to purchase other software not covered by these agreements from third-party suppliers. The costs for these licenses can vary, depending on factors such as the number of users or computers at the hotel.
In addition to these software licenses, Embassy Suites By Hilton franchisees are also required to license the Hilton Property Management System (HPMS) software from HSS, an affiliate of the franchisor. The FDD notes that HSS is the only supplier of the HPMS software due to its proprietary nature, and there is no third-party market to determine a separate market price. The cost for standard hardware and software from HSS is estimated to be between $70,576 and $151,184, which includes hardware, software, installation, and other related costs and fees, depending on the size of the hotel and the number of workstations.