What actions by the lender require notification to the Embassy Suites franchisor?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Lender agrees to notify Franchisor (a) contemporaneously with commencement of any action that may result in an Acquisition, (b) contemporaneously with the filing of a petition for appointment of a receiver or any other action initiated by Lender that materially impacts possession of the Hotel, (c) promptly after an Acquisition of the date the Acquisition occurred, or (d) promptly after Lender no longer has a security interest in the Hotel or the Loan is paid in full, but Lender's failure to give notice under this Subparagraph 3(d) will not affect the automatic termination of this letter agreement under Paragraph 13 [NO ESTOPPEL] 14 [ESTOPPEL].
Lender further agrees to promptly provide to Franchisor a copy of any order appointing a receiver, or any other judicial or administrative order from an action initiated by Lender that materially impacts possession of the Hotel.
All notices to Franchisor should be sent to the following address or such other address periodically designated by Franchisor in writing:
Lender Re: Hotel Name – Facility No. ______ Page 5
Hilton Worldwide Holdings Inc. Attention: General Counsel 7930 Jones Branch Drive, Suite 1100 McLean, VA 22102
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, a lender is required to notify the franchisor under specific circumstances. Contemporaneously with the commencement of any action that may result in an Acquisition, the lender must notify Embassy Suites. Additionally, the lender must provide notification contemporaneously with the filing of a petition for appointment of a receiver or any other action initiated by the lender that materially impacts possession of the Hotel.
Furthermore, the lender is obligated to notify Embassy Suites promptly after an Acquisition of the date the Acquisition occurred. The lender must also provide notification promptly after it no longer has a security interest in the Hotel or the Loan is paid in full. However, failure to give notice under this specific circumstance will not affect the automatic termination of the letter agreement.
The lender must also promptly provide to Embassy Suites a copy of any order appointing a receiver, or any other judicial or administrative order from an action initiated by the lender that materially impacts possession of the Hotel. All notices to Embassy Suites should be sent to the address specified in the document or such other address periodically designated by Franchisor in writing.