What provisions apply to any sale, assignment, or transfer by the lender after an Assumption of the Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Lender's Sale to Third Party After Assumption. The transfer provisions of the Franchise Agreement will apply to any sale, assignment or transfer by Lender after an Assumption. If the transfer is to a third party who desires to continue to operate the Hotel, these provisions require a change of ownership application, approval of the third party and payment of an application fee.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the standard transfer provisions of the Franchise Agreement apply to any sale, assignment, or transfer by a lender after they have assumed the franchise. This means that if a lender who has taken over an Embassy Suites location then decides to sell it to a third party who intends to continue operating it as an Embassy Suites, that third party must go through a change of ownership application process.
Specifically, the third party will need to be approved by Embassy Suites, and the lender will be required to pay an application fee. This process ensures that any new owner meets the brand's standards and is financially capable of maintaining the franchise.
These requirements are typical in franchising, as franchisors want to maintain consistent brand standards and protect their trademarks. By requiring approval and an application fee, Embassy Suites retains control over who operates its branded hotels, even in situations where a lender has taken over the property.