In the context of Exhibit K, what does the Embassy Suites By Hilton FDD define as 'Franchisor'?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| HILTON FRANCHISE HOLDING LLC, a Delaware limited liability company [IF NEEDED:, successor-by merger to SELECT DOUBLETREE FRANCHISE LLC, a Delaware limited liability company, EMBASSY SUITES FRANCHISE LLC, a Delaware limited liability company, HILTON FRANCHISE LLC, a Delaware limited liability company, HAMPTON INNS FRANCHISE LLC, a Delaware limited liability company, HILTON GARDEN INNS FRANCHISE LLC, a Delaware limited liability company, HOMEWOOD SUITES FRANCHISE, LLC, a Delaware limited liability company, HLT ESP FRANCHISE LLC, a Delaware limited liability company OR SELECT HLT EXISTING FRANCHISE HOLDING LLC, a Delaware limited liability company, successor-in-interest to [DT Doubletree Hotel Systems, Inc. [ES, HAM, HWS Promus Hotels, Inc. [HFS, HGI, CI, WAC Hilton Inns, Inc.] SELECT FOR CANADA: HILTON WORLDWIDE FRANCHISING LP, a limited partnership formed under the laws of England and Wales] ("Franchisor") | ||
|---|---|---|
| and, a ("Franchisee") are parties to a | ||
| franchise agreement | ||
| dated, including all amendments, riders, supplemental agreements and assignments | ||
| (collectively, "Franchise Agreement"). Franchisee | ||
| operates [ | ||
| will operate | ||
| ] the [INSERT | ||
| brand | ||
| ] | ||
| hotel | ||
| [ | ||
| to | ||
| be | ||
| ] located at | ||
| ("Hotel") under the terms of the Franchise Agreement. |
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, in the context of the Mezzanine Lender Comfort Letter, "Franchisor" refers to HILTON FRANCHISE HOLDING LLC, a Delaware limited liability company. The document further clarifies that this entity may be the successor by merger to several other Delaware limited liability companies, including SELECT DOUBLETREE FRANCHISE LLC, EMBASSY SUITES FRANCHISE LLC, HILTON FRANCHISE LLC, HAMPTON INNS FRANCHISE LLC, HILTON GARDEN INNS FRANCHISE LLC, HOMEWOOD SUITES FRANCHISE, LLC, HLT ESP FRANCHISE LLC or SELECT HLT EXISTING FRANCHISE HOLDING LLC, successor in interest to SELECT [DT] Doubletree Hotel Systems, Inc. [ES, HAM, HWS] Promus Hotels, Inc. [HFS, HGI, CON, WA] Hilton Inns, Inc. For operations in Canada, the Franchisor may be HILTON WORLDWIDE FRANCHISING LP, a limited partnership formed under the laws of England and Wales.
This definition is crucial in understanding the legal entity with which a franchisee is contracting and the scope of its responsibilities and rights under the franchise agreement. The Mezzanine Lender Comfort Letter is an agreement between the franchisor, franchisee, and a lender providing financing to the franchisee. It outlines the rights and responsibilities of each party, particularly in the event of a default by the franchisee.
For a prospective Embassy Suites By Hilton franchisee, it is important to understand which specific entity acts as the Franchisor, as this determines who they will be dealing with directly for the franchise agreement. The franchisee should also note that Hilton Worldwide Holdings Inc., a Delaware corporation, or its subsidiaries or affiliates are collectively referred to as "Hilton" and that the Franchisor may terminate the Franchise Agreement if the Franchisee's default damages the image or reputation of Hilton or any brand name owned and/or licensed by Hilton.