What entities are considered acceptable Assignees of the Loan for Embassy Suites By Hilton?
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.
If there is more than one Assignee, the Assignees must (i) designate a single representative to receive notices, negotiate on behalf of and bind each Assignee in connection with this letter agreement and any assignment thereof, and (ii) acknowledge that Franchisor shall be entitled to rely on such designation and deal solely with such representative without the necessity of notifying, negotiating with, or obtaining the consent of, each Assignee.
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to the 2025 FDD, Embassy Suites By Hilton outlines specific requirements for entities to be considered acceptable assignees of a loan. To be an acceptable assignee, the loan must not be in default when the notice is given to Embassy Suites By Hilton. The lender must provide notice to Embassy Suites By Hilton within 30 days of the transfer, identifying the assignee and providing the new address for notices.
Furthermore, the assignee must meet certain criteria. Acceptable assignees include national banks, state-chartered banks, commercial banks, investment banks, pension funds, finance companies, insurance companies, or other financial institutions engaged in the business of making loans, or any fund managed by these entities. However, the assignee cannot be a competitor of Embassy Suites By Hilton, nor can they directly or indirectly own any equity interest in the franchisee or its constituent owners.
Embassy Suites By Hilton retains the discretion to reject a notice if the loan is in default when the notice is given, if the notice is not sent by the lender, or if the notice is not sent in a timely manner. Upon receiving and accepting the notice, Embassy Suites By Hilton will prepare its current form of Assignment and Assumption Agreement, which the lender and assignee must promptly execute and return. Embassy Suites By Hilton may also charge a nominal fee for processing the assignment. If there are multiple assignees, they must designate a single representative to receive notices and negotiate on their behalf, and Embassy Suites By Hilton is entitled to rely on this designation.