What is the required action if there is more than one Assignee of the Loan for Embassy Suites?

According to Embassy Suites' 2025 Franchise Disclosure Document, if there is more than one Assignee of a loan, the Assignees must designate a single representative. This representative will receive notices and negotiate on behalf of all Assignees. The representative also has the power to bind each Assignee in connection with the letter agreement and any assignment thereof. Embassy Suites is entitled to rely solely on this designated representative, without needing to notify, negotiate with, or obtain consent from each individual Assignee.

This requirement streamlines communication and decision-making for Embassy Suites when dealing with multiple Assignees. By designating a single point of contact, Embassy Suites avoids the complexity of managing communications and approvals from numerous parties. This ensures efficiency and clarity in all interactions related to the loan and the franchise agreement.

For a prospective Embassy Suites franchisee, this means that if the loan for their franchise is held by multiple entities, these entities must coordinate to appoint a representative. This process is important to ensure that all communications with Embassy Suites are handled efficiently. It also ensures that the franchisee understands who the authorized representative is for the lenders, which is crucial for any negotiations or agreements related to the loan and the franchise.

This requirement is a standard practice in franchise agreements to simplify interactions with lenders, especially when loans are syndicated or held by multiple parties. It protects the franchisor, Embassy Suites, from potential disputes or delays that could arise from dealing with multiple uncoordinated entities. Franchisees should ensure their lenders are aware of this requirement to avoid any complications in their relationship with Embassy Suites.