Under what condition is the Lender responsible for post-termination de-identification obligations at the Embassy Suites hotel?

According to Embassy Suites's 2025 Franchise Disclosure Document, a lender may be responsible for post-termination de-identification obligations at an Embassy Suites hotel if the lender possesses the hotel before a Waiver Notice becomes effective. Specifically, if the lender (or its designee) comes into possession of the hotel before the Waiver Notice is effective, the lender is responsible for these de-identification obligations. The Waiver Notice is the lender's written notice to Embassy Suites that they are waiving their right to assume the Franchise Agreement.

In addition to post-termination de-identification obligations, the lender is also responsible for paying any fees owed to Embassy Suites under the Franchise Agreement that accrued while the lender was in possession of the hotel before the Waiver Notice takes effect. However, the lender is not liable for termination fees or liquidated damages arising from the early termination of the Franchise Agreement.

This condition is important for prospective Embassy Suites franchisees and lenders to understand, as it clarifies the financial and operational responsibilities during the transition period when a lender takes possession of a hotel due to franchisee default. The de-identification process typically involves removing Embassy Suites branding and trademarks from the property to ensure it no longer represents the brand after termination of the franchise agreement. This can include signage, marketing materials, and other branded items.