What constitutes an 'Equity Interest' in 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.
[SELECT FOR ALL BRANDS EXCEPT CI, HFS: Except in the case of a Transfer governed by Subsection 12.2.1 of this Agreement, if you or a Controlling Affiliate want to Transfer any Equity Interest, you must give us written notice, concurrently with beginning your marketing efforts.]
- 16.11.6 no Equity Interest has been issued, converted to, or is held as, bearer shares or any other form of ownership, for which there is no traceable record of the identity of the legal and beneficial owner of such Equity Interest; and
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, an Equity Interest can be transferred when an Equity Owner who is a natural person dies. In this case, the Equity Interest of the deceased Equity Owner may transfer in accordance with such person's will or the laws of intestacy if the person dies without a will.
However, there are conditions for this transfer. The transfer on death must be to an immediate family member or to a legal entity formed by such family member(s). Additionally, within one year after the death, the family member(s) or entity must meet all of Embassy Suites By Hilton's then-current requirements for an approved Transferee.
Furthermore, if a franchisee or a Controlling Affiliate wants to transfer any Equity Interest, they must provide Embassy Suites By Hilton with written notice concurrently with beginning their marketing efforts. This does not apply to transfers governed by Subsection 12.2.1 of the agreement. Embassy Suites By Hilton also requires that no Equity Interest has been issued, converted to, or is held as, bearer shares or any other form of ownership, for which there is no traceable record of the identity of the legal and beneficial owner of such Equity Interest.