When is the termination fee due after the termination of the Embassy Suites By Hilton franchise agreement?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the termination fee is due within thirty days after the termination of the franchise agreement, or on demand. This means that upon the termination of the agreement, Embassy Suites By Hilton has the right to immediately demand the termination fee, or the franchisee has a 30 day window to pay the fee.

This condition is important for prospective franchisees to understand, as it clarifies the payment terms associated with the termination fee. Franchisees should be prepared to pay the termination fee promptly upon the agreement's termination, either immediately if demanded by Embassy Suites By Hilton or within the 30-day timeframe. Failure to meet this obligation could result in additional penalties or legal action from the franchisor.

It is also important to note that the FDD states that the termination fee is an agreed fee and does not represent a penalty or liquidated damages. The termination fee does not give the franchisee the right or option to terminate the agreement before the expiration date.