How does the Embassy Suites By Hilton agreement define 'Trade Restrictions'?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, 'Trade Restrictions' are defined within the context of a Lender Estoppel and Release agreement. Specifically, the document states that 'Trade Restrictions' encompass trade, economic or investment sanctions, export controls, anti-terrorism, nonproliferation, anti-money laundering, and similar restrictions. These restrictions must be in force and pursuant to laws, rules, and regulations imposed under Laws to which the relevant parties are subject.

This definition is important because it relates to whether a lender is considered a 'Sanctioned Person.' A 'Sanctioned Person' is any entity subject to these 'Trade Restrictions' that would prohibit or restrict the parties' ability to fulfill their obligations under the franchise agreement. This clause ensures that Embassy Suites By Hilton does not enter into agreements with lenders who may be restricted by international trade laws, which could impede the operation and financial transactions related to the franchise.

For a prospective Embassy Suites By Hilton franchisee, this definition highlights the importance of ensuring that any financing obtained does not involve lenders subject to trade restrictions. Failure to comply with these regulations could lead to legal and financial complications, potentially impacting the franchisee's ability to operate the hotel effectively. Therefore, franchisees should carefully vet potential lenders and ensure they meet the criteria outlined in the franchise agreement to avoid any conflicts with trade laws and regulations.