Where should payments for the Embassy Suites Development Incentive Note be sent?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If a termination of the Franchise Agreement occurs for any reason; or a Transfer occurs, and the transferee does not assume Maker's obligation under this Note and cause a replacement co-maker acceptable to Holder to assume the obligations of any co-maker under this Note in a writing acceptable to Holder before the closing of such Transfer before the principal is forgiven or repaid, then the outstanding, unamortized principal balance of this Note shall be immediately due and payable without further notice, demand or presentment. If this Note is accelerated under this paragraph, and is not paid within ten (10) days after it is due, the outstanding principal balance shall bear simple interest from its due date until paid at a rate equal to the lesser of eighteen percent (18%) per annum or the highest rate allowed by applicable law. The outstanding principal balance of this Note shall be payable in lawful money of the United States of America at 7930 Jones Branch Dr., Suite 1100, McLean, VA 22102, Attention: General Counsel, or at such other place as Holder may periodically direct by written notice to Maker. Any payments shall be first applied to collection costs and expenses, if any, incurred by the Holder, second to any accrued but unpaid interest and last to principal. Maker has the right to prepay this Note, in whole or in part, at any time, without premium or penalty but amounts paid or prepaid may not be re-disbursed. Prepayments of principal will be applied without notation on this Note. Maker's obligation to pay this Note shall be absolute and unconditional, and all payments shall be made without setoff, deduction, offset, recoupment or counterclaim.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the outstanding principal balance of the Development Incentive Note is payable in lawful money of the United States of America. Payments should be sent to 7930 Jones Branch Dr., Suite 1100, McLean, VA 22102, Attention: General Counsel, or at another place as the Holder (Hilton Franchise Holding LLC) may periodically direct by written notice to the Maker (the franchisee).
Any payments made will be applied in a specific order: first, to cover any collection costs and expenses incurred by the Holder; second, to cover any accrued but unpaid interest; and finally, to reduce the principal balance. The Maker has the right to prepay the Note, in whole or in part, at any time, without incurring any premium or penalty. However, any amounts paid or prepaid cannot be re-disbursed, and prepayments of principal will be applied without any specific notation on the Note.
The Maker's obligation to pay the Note is absolute and unconditional, meaning that all payments must be made without any setoff, deduction, offset, recoupment, or counterclaim. This ensures that the Holder receives the full payment amount without any reductions due to disputes or other financial claims the Maker might have.
If the Franchise Agreement is terminated for any reason, or if a Transfer occurs and the transferee does not assume the Maker's obligations under the Note, the outstanding principal balance of the Note becomes immediately due and payable. If this accelerated payment is not made within ten days, the outstanding principal balance will bear simple interest from the due date until paid, at a rate equal to the lesser of 18% per annum or the highest rate allowed by applicable law.