Where will Embassy Suites By Hilton send the default notice to the lender?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Notice of Franchisee Default. Franchisor will concurrently provide Lender a copy of any default notice sent to Franchisee under the Franchise Agreement. The notice will be sent to Lender at the address set forth above or such other address designated by Lender in writing, provided that only a single address may be designated and it may not be a P.O. Box.
- (b) Lender's Cure Periods. 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
Source: Item 23 — RECEIPTS (FDD pages 97–304)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, Embassy Suites By Hilton will send a copy of any default notice sent to the franchisee under the Franchise Agreement to the lender at the address set forth in the Mezzanine Lender Comfort Letter. The notice will be sent to the lender at the address set forth above or such other address designated by Lender in writing, provided that only a single address may be designated and it may not be a P.O. Box.
This ensures that the lender is informed of any defaults by the franchisee, allowing the lender to take steps to protect its investment. The lender has the right, but not the obligation, to cure the default within fifteen calendar days beyond the expiration of any cure period given to the franchisee.
If the default involves physical standards or other non-monetary issues that can only be resolved through the lender acquiring possession or ownership of the hotel, the lender may have an additional 180 calendar days, starting after the Lender's Cure Period, to complete the acquisition through a UCC sale, foreclosure, or other appropriate proceedings. To qualify for this extension, the lender must notify Embassy Suites By Hilton no later than when proceedings commence, diligently pursue the proceedings, and fulfill the franchisee's obligations under the Franchise Agreement, excluding those that only the franchisee can perform or that the lender cannot perform without possession or ownership of the hotel.