Besides transfers governed by Subsection 12.2.1, what must an Embassy Suites franchisee do concurrently with beginning marketing efforts to transfer any equity interest?

According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee or a controlling affiliate wants to transfer any equity interest, and the transfer is not governed by Subsection 12.2.1 of the franchise agreement, they must provide written notice to Embassy Suites concurrently with the start of their marketing efforts. This requirement ensures that Embassy Suites is informed about potential changes in ownership and can take necessary steps to protect its interests.

This notification allows Embassy Suites to stay informed about potential changes in the ownership structure of its franchises. By requiring concurrent notice, Embassy Suites can promptly assess the implications of the proposed transfer and exercise any rights it may have, such as the right of first refusal. This proactive approach helps Embassy Suites maintain control over its brand and ensure that any new equity holders meet its standards.

For a prospective Embassy Suites franchisee, this means that if they ever decide to sell or transfer any part of their ownership in the franchise, they need to inform Embassy Suites at the same time they start advertising or seeking potential buyers. Failing to do so could result in a breach of the franchise agreement and potential legal or financial repercussions. It is crucial for franchisees to understand and comply with this requirement to maintain a good relationship with Embassy Suites and avoid any complications during the transfer process.