According to the Embassy Suites FDD, what is considered a 'Permitted Transfer'?

According to Embassy Suites' 2025 Franchise Disclosure Document, a 'Permitted Transfer' is defined as any transfer by the franchisee or their equity owners that does not result in a change of control of the franchisee, the hotel, or the hotel site. This definition is specified in Section 12.2 of the Franchise Agreement.

In essence, a Permitted Transfer allows for changes in ownership or equity without fundamentally altering who controls the Embassy Suites franchise. This is important because Embassy Suites wants to ensure that the individuals or entities in charge of the hotel meet their standards and have the necessary business skills, financial capacity, and personal character.

For a prospective Embassy Suites franchisee, understanding what constitutes a Permitted Transfer is crucial. It dictates the circumstances under which they can transfer ownership or equity without needing to go through the more rigorous process required for a change of control. This provides flexibility for the franchisee while ensuring that Embassy Suites maintains control over who ultimately operates their branded hotels.