What is the purpose of the Change of Ownership Application for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
"Change of Ownership Application" means the application that is submitted to us by you or the Transferee for a new franchise agreement in connection with a Change of Ownership Transfer.
"Change of Ownership Transfer" means any proposed Transfer that results in a change of Control of Franchisee, the Hotel, or the Hotel Site and is not otherwise permitted by this Agreement, all as set out in Subsection 12.2.2.
12.2.2 Change of Ownership Transfer. A Change of Ownership Transfer is any Transfer that will result in a change of Control of you, the Hotel or the Hotel Site, or is not otherwise described in Subsection 12.2.1. We will have sixty (60) days from our receipt of the completed and signed franchise application to consent or withhold our consent to any proposed Change of Ownership Transfer. Our consent will not be unreasonably withheld. You consent to our communication with any third party we deem necessary about the Hotel in order for us to evaluate the proposed Change of Ownership Transfer. Our consent to the Change of Ownership Transfer is subject to the following conditions, all of which must be satisfied at or before the date of closing the Change of Ownership Transfer ("Closing"):
12.2.2.1 Transferee submits a completed and signed Change of Ownership Application, pays our then-current franchise application fee, executes our then-current form of franchise agreement, and all required ancillary documents. If all conditions to our consent are fulfilled, the date of Closing will be the termination date of this Agreement, and the effective date of Transferee's franchise agreement;
12.2.2.2 you are not in default of this Agreement or any other agreements with
us or our Affiliates;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Change of Ownership Application is used when there is a transfer that results in a change of control of the franchisee, the hotel, or the hotel site. This application is submitted to Embassy Suites By Hilton, or by the Transferee, for a new franchise agreement in connection with a Change of Ownership Transfer.
Embassy Suites By Hilton has 60 days from receipt of the completed and signed franchise application to either consent to or withhold consent for the proposed Change of Ownership Transfer. However, Embassy Suites By Hilton states that consent will not be unreasonably withheld. As part of the application review, Embassy Suites By Hilton may communicate with any third party it deems necessary to evaluate the proposed transfer.
To get consent for the Change of Ownership Transfer, the Transferee must submit a completed and signed Change of Ownership Application, pay the then-current franchise application fee, and execute the then-current form of the franchise agreement along with all required ancillary documents. Additionally, the current franchisee must not be in default of the existing agreement or any other agreements with Embassy Suites By Hilton or its affiliates. If all conditions are met, the closing date of the transfer will be the termination date of the existing agreement and the effective date of the new franchisee's agreement.