What is the deadline for the lender to notify Embassy Suites By Hilton of a loan transfer to an Assignee?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) any subsequent holder or holders of the Loan ("Assignee") if (1) the Loan is not in default when notice is given; (2) Lender gives notice to Franchisor, identifying Assignee and the new address for notice, within thirty (30) days of the transfer; and (3) the Assignee (i) is a national bank, statechartered bank, commercial bank, investment bank, pension fund, finance company, insurance company, or other financial institution engaged in the business of making loans or any fund managed by any of the foregoing, (ii) is not a Competitor of Franchisor, and (iii) does not own directly or indirectly, any equity interest in Franchisee or its constituent owners; provided, however, that Franchisor may, in its discretion, reject a notice if the Loan is in default when notice is given, or if the notice is not sent by Lender, or if notice is not sent in a timely manner in accordance with this Subparagraph.
On receipt and acceptance of the notice, Franchisor will promptly prepare its then-current form of Assignment and Assumption Agreement ("Assignment") and Lender and Assignee must promptly execute and return the Assignment.
Franchisor may charge a nominal fee for processing the Assignment.
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, if a loan is transferred to a subsequent holder or holders (Assignee), the lender must notify Embassy Suites By Hilton within thirty (30) days of the transfer.
However, this notification is only required if the loan is not in default when the notice is given. The lender must identify the Assignee and provide the new address for notices. Additionally, the Assignee must meet specific criteria, including being a national bank, state-chartered bank, commercial bank, investment bank, pension fund, finance company, insurance company, or other financial institution engaged in the business of making loans or any fund managed by any of the foregoing. The Assignee must also not be a Competitor of Embassy Suites By Hilton and must not own any equity interest in the franchisee or its constituent owners.
Embassy Suites By Hilton retains the discretion to reject the notice if the loan is in default, if the notice is not sent by the lender, or if the notice is not sent within the specified 30-day timeframe. Upon receipt and acceptance of the notice, Embassy Suites By Hilton will prepare its current form of Assignment and Assumption Agreement, which both the lender and Assignee must promptly execute and return. Embassy Suites By Hilton may also charge a nominal fee for processing the Assignment.