What is the length of the Lender's Cure Period for an Embassy Suites By Hilton franchise default?
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 and/or ownership of the Hotel (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, for Lender to complete its Acquisition, through 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; 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 and/or ownership of the Hotel.
On request by Lender, the Additional Period may be further 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.
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 default within fifteen 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 failure to comply with physical standards or other non-monetary issues that can only be resolved by the lender acquiring possession or ownership of the hotel (an "Acquisition"), the lender may have an additional 180 calendar days, starting after the Lender's Cure Period, to complete the Acquisition through foreclosure or other proceedings.
To qualify for this additional period, the lender must notify Embassy Suites By Hilton that they want the Additional Period no later than when they start proceedings, diligently pursue those proceedings to completion, and comply with the franchisee's obligations under the Franchise Agreement that the franchisee is not fulfilling during the Additional Period. This includes paying all monetary obligations, except for those that only the franchisee can perform or that the lender cannot perform without possession or ownership of the hotel. The franchisor may further extend the additional period based on the time required to complete an acquisition in the relevant jurisdiction or if the lender's action has been stayed or enjoined.