What information must an Embassy Suites By Hilton applicant provide regarding ownership?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
INSTRUCTIONS: Please attach a full organizational chart for the Applicant entity (and Applicant's affiliate that will lease or sublease the Hotel or the Hotel Site to Applicant, if applicable) showing all direct and indirect equity owners up to the ultimate individual owners (but excluding public shareholders or passive investors in an institutional investment fund). For each equity owner, please describe the type of interest held in the entity (e.g.,shareholder, general partner, limited partner, manager, member, trustee, etc.) and show the percentage of ownership of each equity owner.
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, an applicant must provide a full organizational chart for the applicant entity and any affiliate that will lease or sublease the hotel or site to the applicant. This chart must show all direct and indirect equity owners up to the ultimate individual owners, excluding public shareholders or passive investors in an institutional investment fund.
For each equity owner, the applicant must describe the type of interest held in the entity, such as shareholder, general partner, limited partner, manager, member, or trustee. The applicant must also show the percentage of ownership of each equity owner. This detailed breakdown allows Embassy Suites By Hilton to understand the complete ownership structure and identify all parties with a financial interest in the franchise.
This requirement is typical in franchising, as franchisors need to assess the financial stability and background of all individuals and entities involved in the ownership of a franchise. By providing this information, the applicant enables Embassy Suites By Hilton to conduct thorough due diligence and make informed decisions about awarding a franchise.