What is the procedure for processing Permitted Transfers under the Embassy Suites By Hilton agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
For Permitted Transfers under this Subsection, you must: (a) give us at least sixty (60) days' advance written notice of the proposed Permitted Transfer (including the identity and contact information for any proposed transferee); (b) pay to us on request our then-current nonrefundable processing fee; [INSERT ONLY AT DEVELOPMENT'S REQUEST OTHERWISE DELETE [ND: provided, however, we agree to waive the processing fee for one (1) Permitted Transfer if it occurs before the Opening Date]; [COO: provided, however, we agree to waive the processing fee for one (1) Permitted Transfer if it occurs within twelve months after the Closing/Effective Date**;]** (c) follow our then-current procedure for processing Permitted Transfers, including providing any information we may require in order to review the proposed Transfer and completing our then-current compliance process; and (d) execute our then-current standard documents required for processing Permitted Transfers.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, a "Permitted Transfer" refers to any transfer by the franchisee or their Equity Owners that does not result in a change of control of the franchisee, the hotel, or the hotel site. Embassy Suites By Hilton will allow franchisees or Equity Owners to engage in Permitted Transfers if the listed requirements are met.
For Permitted Transfers that require notice and consent, the franchisee must give Embassy Suites By Hilton at least sixty (60) days' advance written notice of the proposed transfer, including the identity and contact information for any proposed transferee. The franchisee must also pay Embassy Suites By Hilton's then-current nonrefundable processing fee. However, the processing fee may be waived for one Permitted Transfer if it occurs before the Opening Date, or within twelve months after the Closing/Effective Date.
Additionally, the franchisee must follow Embassy Suites By Hilton's then-current procedure for processing Permitted Transfers, including providing any information Embassy Suites By Hilton may require in order to review the proposed Transfer and completing their then-current compliance process. The franchisee must also execute Embassy Suites By Hilton's then-current standard documents required for processing Permitted Transfers.
It is important for prospective Embassy Suites By Hilton franchisees to understand these procedures, as failure to comply with them could result in the transfer being denied or other penalties. Franchisees should also be aware of the costs associated with Permitted Transfers, including the processing fee, and factor these costs into their financial planning.