What happens to the Embassy Suites By Hilton franchise term upon a change of ownership?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, a 'Change of Ownership' refers to the transfer of ownership or control of an existing Embassy Suites By Hilton hotel to a new owner. While the document does not explicitly detail what happens to the franchise term upon a change of ownership, it does state that the transfer provisions of the Franchise Agreement will apply to any sale, assignment, or transfer by a lender after an assumption. This implies that a change of ownership necessitates a change of ownership application, approval of the third party, and payment of an application fee if the new owner desires to continue operating the hotel as an Embassy Suites By Hilton franchise.

This process ensures that the new owner meets the franchisor's standards and is capable of maintaining the quality and consistency of the Embassy Suites By Hilton brand. The application and approval process allows Embassy Suites By Hilton to assess the new owner's financial stability, operational experience, and commitment to upholding brand standards. The application fee likely covers the costs associated with this review process.

Prospective franchisees should inquire with Embassy Suites By Hilton about the specific requirements and procedures for a change of ownership, including the application fee amount, the criteria for approval, and any potential impact on the remaining term of the franchise agreement. Understanding these details is crucial for anyone considering purchasing an existing Embassy Suites By Hilton franchise or planning for the eventual sale of their franchise.