Can the Additional Period for an Embassy Suites By Hilton franchise be extended?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
If the default is for failure to comply with physical standards or other non-monetary default which could only be cured by Lender acquiring possession and/or ownership of the Hotel (each, an "Acquisition"), Lender may have an additional period of one hundred eighty (180) calendar days, commencing at the expiration of Lender's Cure Period, for Lender to complete its Acquisition, through foreclosure or other appropriate proceedings ("Additional Period"); provided that Lender must: (i) notify Franchisor no later than the date it commences proceedings (or promptly after action is stayed or enjoined) that Lender wants the Additional Period; (ii) commence proceedings and diligently prosecute such proceedings to completion; and (iii) comply with the obligations of Franchisee under the Franchise Agreement not being performed by Franchisee during the Additional Period including payment of all monetary obligations but excluding those obligations which can only be performed by Franchisee or which Lender cannot perform without possession and/or ownership of the Hotel.
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 97–304)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Additional Period, which is the time a lender has to complete the acquisition of a hotel, may be extended. Specifically, if the default involves non-monetary issues requiring the lender to take possession or ownership of the hotel, the lender initially has an additional 180-day period after the Lender's Cure Period to complete the acquisition.
The franchisor, Embassy Suites By Hilton, may further extend this Additional Period upon the lender's request. The decision to grant an extension is at the franchisor's discretion, taking into account the time needed to complete the acquisition in the relevant jurisdiction and any delays caused by stays or injunctions affecting the lender's actions.
This flexibility benefits prospective Embassy Suites By Hilton franchisees by providing lenders with more time to resolve complex defaults, potentially preventing franchise termination. However, the extension is not guaranteed and depends on the franchisor's assessment of the situation. Franchisees should be aware that the franchisor retains significant control over whether to grant such extensions, balancing the interests of the lender with the brand's overall standards and reputation.