What constitutes an 'Additional Period' for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Lender shall have the right, but not the obligation, to cure the default within fifteen (15) calendar days beyond the expiration of any cure period given to Franchisee ("Lender's Cure Period"). 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.
If Franchisor has not issued a default notice to Franchisee or Lender has cured Franchisee's default during Lender's Cure Period and Lender commences a foreclosure or other proceeding intended to result in an Acquisition, Lender may exercise the rights under this letter agreement under the terms and timelines outlined in this Subparagraph.
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' refers to a timeframe granted to a lender to complete the acquisition of a hotel facing non-monetary defaults, such as failure to comply with physical standards. This period, lasting 180 calendar days, commences after the expiration of the Lender's Cure Period.
For a lender to be eligible for this Additional Period, they must (i) notify Embassy Suites By Hilton no later than when proceedings begin that they want the Additional Period; (ii) start proceedings and diligently pursue them to completion; and (iii) fulfill the franchisee's obligations under the Franchise Agreement that the franchisee isn't performing during the Additional Period. This includes paying all monetary obligations, except those that only the franchisee can perform or that the lender cannot perform without possessing the hotel.
Embassy Suites By Hilton may further extend the Additional Period upon the lender's request. This determination considers the time needed to complete the acquisition in the relevant jurisdiction and any time the lender's action has been stayed or legally blocked. If Embassy Suites By Hilton hasn't issued a default notice to the franchisee, or if the lender has resolved the franchisee's default during the Lender's Cure Period and the lender starts foreclosure proceedings, the lender can exercise the rights under this agreement based on the terms and timelines outlined.