What limitations are placed on renovation requirements imposed by the Franchisor in connection with the Assumption of an Embassy Suites franchise?

According to Embassy Suites's 2025 Franchise Disclosure Document, any renovation requirements imposed by the franchisor in connection with the assumption of a franchise will not exceed what they could have imposed if the original franchisee had remained in place. This limitation applies both when a lender assumes the franchise agreement and when there is a change of control of the franchisee.

For a prospective Embassy Suites franchisee, this means that if a lender or another party assumes the franchise, the renovation requirements will be no more stringent than what the original franchisee would have faced. This provides some predictability and limits the potential financial burden of unexpected or excessive renovation demands during an assumption or change of control.

This condition protects the lender or new controlling party from being subjected to escalated renovation demands that could negatively impact the financial viability of the Embassy Suites hotel. It ensures that the renovation standards remain consistent with the original agreement, providing a degree of stability during transitions.