What form does the Franchisor prepare to document the Assumption of the Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor confirms that Lender is not a Sanctioned Person, Franchisor will promptly prepare Franchisor's then-current form assumption agreement ("Assumption Agreement") to document the Assumption, and deliver the Assumption Agreement to Lender.
Lender must execute and return the Assumption Agreement to Franchisor within ten (10) business days after receipt from Franchisor.
Lender's failure to timely execute and deliver the Assumption Agreement may be deemed a default under the Franchise Agreement entitling Franchisor to terminate the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the franchisor, Hilton Franchise Holding LLC, uses a specific form to document the assumption of the franchise agreement by a lender. If a lender acquires the hotel due to an acquisition, they are considered to have assumed the Franchise Agreement. To formalize this, Embassy Suites will prepare its "then-current form assumption agreement" to document the assumption.
The lender is then required to execute and return this Assumption Agreement to Embassy Suites within ten business days of receiving it. Failure to do so may be considered a default under the Franchise Agreement, potentially leading to termination of the agreement. This process ensures that the lender formally agrees to abide by the terms of the existing Franchise Agreement.
Alternatively, Embassy Suites may prepare an amendment to the Franchise Agreement to document the assumption. The lender must provide all necessary information to determine if they are a sanctioned person and provide any other requested documents regarding their ownership structure within ten business days of the request. The lender must then execute and return the amendment to Embassy Suites within ten business days of receipt. Failure to do so may result in a default under the Franchise Agreement, potentially leading to termination.