Who is considered an 'Equity Owner' of an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2.1.2.3 Transfer on Death. On the death of Franchisee or an Equity Owner who is a natural person, this Agreement or the Equity Interest of the deceased Equity Owner may Transfer in accordance with such person's will or, if such person dies intestate, in accordance with laws of intestacy governing the distribution of such person's estate, provided that: (a) the transfer on death is to an immediate family member or to a legal entity formed by such family member(s); and (b) within one (1) year after the death, such family member(s) or entity meet all of our then-current requirements for an approved Transferee.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, an Equity Owner of an Embassy Suites By Hilton franchise is referenced in the context of transferring ownership upon death. Specifically, the FDD mentions that on the death of a franchisee or an equity owner who is a natural person, the franchise agreement or the equity interest of the deceased equity owner may transfer in accordance with the person's will or laws of intestacy.
This transfer is conditional. It must be to an immediate family member or a legal entity formed by such family members. Furthermore, within one year of the death, the family member or entity must meet all of Embassy Suites By Hilton's then-current requirements for an approved transferee.
This clause ensures that while the equity can pass to heirs, Embassy Suites By Hilton retains control over who ultimately operates the franchise, maintaining brand standards and operational consistency. Prospective franchisees should carefully consider these transfer conditions and discuss them with legal and financial advisors to ensure their estate planning aligns with the franchise agreement.