What is the definition of 'Transfer' as it relates to the Embassy Suites franchise agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2.2 Change of Ownership Transfer. A Change of Ownership Transfer is any Transfer that will result in a change of Control of you, the Hotel or the Hotel Site, or is not otherwise described in Subsection 12.2.1. We will have sixty (60) days from our receipt of the completed and signed franchise application to consent or withhold our consent to any proposed Change of Ownership Transfer. Our consent will not be unreasonably withheld. You consent to our communication with any third party we deem necessary about the Hotel in order for us to evaluate the proposed Change of Ownership Transfer. Our consent to the Change of Ownership Transfer is subject to the following conditions, all of which must be satisfied at or before the date of closing the Change of Ownership Transfer ("Closing"):
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, a 'Change of Ownership Transfer' is defined as any transfer that results in a change of control of the franchisee, the hotel, or the hotel site. This definition also encompasses any transfer not explicitly described in Subsection 12.2.1 of the franchise agreement.
For a prospective Embassy Suites franchisee, this definition is crucial because it outlines the circumstances under which the franchisor's consent is required for transferring ownership. If a transfer leads to a change in control of the franchise, hotel, or site, it falls under the 'Change of Ownership Transfer' category, necessitating franchisor approval. This ensures that Embassy Suites maintains standards and protects its brand by vetting potential new owners.
The FDD specifies that Embassy Suites has 60 days from receiving a completed franchise application to either consent to or withhold consent for a proposed Change of Ownership Transfer. The franchisor also states that consent will not be unreasonably withheld, but the franchisor can communicate with third parties about the hotel to evaluate the proposed transfer. This clause protects the franchisor and existing franchisee, as well as any potential new owners.