What happens after the Franchisor confirms that Lender is not a Sanctioned Person for an Embassy Suites franchise?

According to the 2025 Embassy Suites Franchise Disclosure Document, after the franchisor confirms that the Lender is not a Sanctioned Person, the franchisor will promptly prepare their then-current form assumption agreement to document the Assumption and deliver the Assumption Agreement to the Lender. The Lender must then execute and return the Assumption Agreement to Embassy Suites within ten business days after receiving it from the franchisor.

If the lender fails to execute and deliver the Assumption Agreement on time, it may be considered a default under the Franchise Agreement, which could allow Embassy Suites to terminate the agreement. Any renovation requirements that Embassy Suites imposes in connection with the Assumption cannot exceed what they could have required if the original franchisee had remained in place.

In the case of an Equity Acquisition, Embassy Suites, subject to confirmation that the Lender is not a Sanctioned Person, will prepare an Amendment promptly after receiving any information requested. Embassy Suites will deliver the Amendment to the Lender, who must execute and return it within ten business days. Failure to do so may result in a default under the Franchise Agreement, potentially leading to termination.