Under what condition will Embassy Suites waive the processing fee for a Permitted Transfer?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
For Permitted Transfers under this Subsection, you must: (a) give us at least sixty (60) days' advance written notice of the proposed Permitted Transfer (including the identity and contact information for any proposed transferee); (b) pay to us on request our then-current nonrefundable processing fee; [INSERT ONLY AT DEVELOPMENT'S REQUEST OTHERWISE DELETE [ND: provided, however, we agree to waive the processing fee for one (1) Permitted Transfer if it occurs before the Opening Date]; [COO: provided, however, we agree to waive the processing fee for one (1) Permitted Transfer if it occurs within twelve months after the Closing/Effective Date**;]** (c) follow our then-current procedure for processing Permitted Transfers, including providing any information we may require in order to review the proposed Transfer and completing our then-current compliance process; and (d) execute our then-current standard documents required for processing Permitted Transfers.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, under certain circumstances, Embassy Suites will waive the processing fee for a Permitted Transfer. Specifically, if the Permitted Transfer occurs before the Opening Date, Embassy Suites agrees to waive the processing fee for one such transfer. Alternatively, for a Closing/Effective Date, Embassy Suites will waive the processing fee for one Permitted Transfer if it occurs within twelve months after the Closing/Effective Date.
This waiver can be financially beneficial for franchisees who plan to transfer their equity or ownership early in the franchise lifecycle. Permitted Transfers generally refer to transfers that do not result in a change of control of the franchise, the hotel, or the hotel site, as defined in the franchise agreement.
It is important for prospective franchisees to understand the specific conditions and timing requirements for this waiver, as it only applies to one Permitted Transfer and must occur within the specified timeframe (either before the Opening Date or within twelve months after the Closing/Effective Date). Franchisees should carefully review the definitions of "Opening Date" and "Permitted Transfer" in the FDD to ensure they meet the criteria for the waiver.