What is the condition regarding renovation requirements imposed by the Embassy Suites franchisor in connection with the Assumption?

According to Embassy Suites's 2025 Franchise Disclosure Document, any renovation requirements imposed by the franchisor in connection with the Assumption will not exceed those which the franchisor could have imposed had the original franchisee remained as the franchisee under the Franchise Agreement. This condition applies both when a lender assumes the Franchise Agreement and when a lender acquires ownership of the franchisee through an Equity Acquisition.

For a prospective Embassy Suites franchisee, this means that if a lender assumes the franchise agreement due to the original franchisee's default, the renovation requirements imposed will be no more stringent than what the original franchisee would have faced. This provides some level of predictability and limits the potential financial burden of unexpected or excessive renovation demands during the transition.

This condition protects the lender, who is stepping in to maintain the operation of the Embassy Suites franchise, from being subjected to unreasonable or punitive renovation demands. It ensures that the renovation requirements are based on the standard obligations of the franchise agreement, rather than being escalated due to the change in ownership or management. This clause aims to facilitate a smoother transition and maintain the value of the franchise during the Assumption period.