Who determines the term length after a change of ownership for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement you sign will provide for new development, conversion, change of ownership, or re-licensing, depending on your situation. These situations are referred to in this Disclosure Document as "New Development," "Conversion," "Change of Ownership," and "Relicensing," respectively. New Development refers to new building construction. Conversion refers to the renovation of an existing building to bring it into compliance with our Brand Standards so that it may operate as a Brand hotel. Change of Ownership refers to the transfer of ownership or control of an existing Brand hotel to a new owner. Re-licensing refers to the grant of a new franchise after the expiration of a prior franchise for the same hotel. Adaptive Reuse is also a category shown on the Franchise Application. It is a form of Conversion.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Embassy Suites By Hilton franchise agreement you sign will address situations such as change of ownership. However, the document does not specify who determines the term length after a change of ownership. The FDD broadly mentions that the Franchise Agreement covers change of ownership, which involves transferring ownership or control of an existing Brand hotel to a new owner.
Because the FDD does not specify who determines the term length after a change of ownership, prospective franchisees should seek clarification from the franchisor. Understanding the process and criteria used to determine the term length is crucial for making informed decisions about acquiring an existing Embassy Suites By Hilton franchise.
Specifically, a potential franchisee should ask Hilton Franchise Holding LLC about the factors considered when setting the term length for a franchise agreement after a change of ownership. This information will help in evaluating the long-term viability and potential return on investment of the franchise.