What is the definition of 'Equity Owner' for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
I am unable to provide a definition of 'Equity Owner' for an Embassy Suites By Hilton franchise, according to the 2025 Franchise Disclosure Document. While the term 'Equity Owner' is mentioned within the context of transfer on death of the franchisee, the document does not explicitly define what constitutes an 'Equity Owner'.
Specifically, the FDD excerpt discusses the transfer of the franchise agreement or the equity interest of a deceased equity owner to immediate family members or a legal entity formed by them. This transfer is contingent upon the family members or the entity meeting Embassy Suites By Hilton's then-current requirements for an approved transferee within one year of the death.
To fully understand the implications and requirements related to equity ownership, prospective Embassy Suites By Hilton franchisees should seek clarification from the franchisor regarding the definition of 'Equity Owner,' the rights and responsibilities associated with equity ownership, and the specific criteria for an 'approved Transferee' in the event of a transfer.