Under what circumstances can the franchisor extend the Additional Period for an Embassy Suites franchise?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
On request by Lender, the Additional Period may be further extended by Franchisor in its determination, which determination shall take into consideration the period of time required to complete an Acquisition in the applicable jurisdiction, and any period of time in which Lender's action has been stayed or enjoined.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Additional Period, which is the period a lender has to complete the acquisition of a hotel, may be extended by Embassy Suites under specific circumstances. The lender must request an extension, and Embassy Suites will then determine whether to grant it.
Embassy Suites's determination to extend the Additional Period takes into account the time required to complete an Acquisition in the relevant jurisdiction. This suggests that the complexity and legal processes involved in property acquisition within that area will be considered.
Additionally, Embassy Suites will consider any period during which the lender's action to acquire the hotel has been stayed or legally prevented. This implies that if legal challenges or injunctions delay the acquisition process, Embassy Suites may extend the Additional Period to accommodate these delays.