What is the termination fee for Embassy Suites By Hilton during the first year after a Customer Refresh?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
rovider on such refreshed equipment. The terms and conditions of the Authorized Equipment maintenance services for such equipment (included in such initial Refresh and included in any additional Refresh or Refreshes of Customer's Authorized Equipment) will be the same as the terms and conditions of this Schedule B-2, including, but not limited to, the imposition of termination fees as described hereinafter, provided that the Maintenan
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the termination fee varies depending on when the termination occurs relative to the 'Start Date' of equipment shipment and whether it's before or after a 'Customer Refresh' of authorized equipment. A 'Customer Refresh' refers to the replacement or refreshment of authorized equipment, typically on a three-year cycle.
If the agreement is terminated after a Customer Refresh, the termination fee structure changes. Specifically, if termination occurs during the first year following the Start Date applicable to the shipment of such authorized equipment for each successive Customer Refresh, the termination fee will be $3,800.
In subsequent years after the Customer Refresh, the termination fees are as follows: $2,800 during the second year, $1,400 during the third year, and $1,200 thereafter. This fee structure is designed to reimburse HSS and/or the Preferred Provider for costs associated with the start-up and provision of maintenance services, as well as other uncovered expenses.