What is the length of the Lender's Cure Period for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Lender shall have the right, but not the obligation, to cure the default within fifteen (15) calendar days beyond the expiration of any cure period given to Franchisee ("Lender's Cure Period"). If the default is for failure to comply with physical standards or other non-monetary default which could only be cured by Lender acquiring possession of the Hotel and/or ownership of Franchisee (each, an "Acquisition"), Lender may have an additional period of one hundred eighty (180) calendar days, commencing at the expiration of Lender's Cure Period, to complete its Acquisition, through UCC sale, foreclosure or other appropriate proceedings ("Additional Period"); provided, that Lender must: (i) notify Franchisor no later than the date it commences proceedings (or promptly after action is stayed or enjoined) that Lender wants the Additional Period; (ii) commence proceedings and diligently prosecute such proceedings to completion within the Additional Period; and (iii) comply with the obligations of Franchisee under the Franchise Agreement not being performed by Franchisee during the Additional Period including payment of all monetary obligations but excluding those obligations which can only be performed by Franchisee or which Lender cannot perform without possession of the Hotel and/or ownership of Franchisee. On request by Lender, the Additional Period may be extended by Franchisor in its determination, which determination shall take into consideration the period of time required to complete an Acquisition in the applicable jurisdiction, and any period of time in which Lender's action has been stayed or enjoined. If Franchisor has not issued a default notice to
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, a lender has the right to cure a franchisee's default within fifteen (15) calendar days beyond the expiration of any cure period given to the franchisee. This period is referred to as the "Lender's Cure Period."
If the default involves non-compliance with physical standards or other non-monetary issues that can only be resolved by the lender taking possession or ownership of the hotel (an "Acquisition"), the lender may have an additional one hundred eighty (180) calendar days, starting from the end of the Lender's Cure Period, to complete the Acquisition through appropriate proceedings. To qualify for this extended period, the lender must notify Embassy Suites By Hilton when proceedings begin, diligently pursue these proceedings, and fulfill the franchisee's obligations under the Franchise Agreement, including monetary obligations, except for those that only the franchisee can perform or that the lender cannot perform without possession or ownership of the hotel.
Embassy Suites By Hilton may extend the Additional Period at the lender's request, considering the time needed to complete the Acquisition in the relevant jurisdiction and any delays caused by stays or injunctions. If Embassy Suites By Hilton has not issued a default notice, the lender's notice of the franchisee's default will be considered the start of the Lender's Cure Period and Additional Period.