Can the Guaranty and Assumption of Obligations for Americas Best Value Inn be amended during the term of the agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given as of , by the undersigned. |
|---|
| In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (as |
| amended, modified, restated or supplemented from time to time, the "Franchise Agreement") on this date by |
| SONESTA RL HOTELS FRANCHISING INC. |
| ("we"), and, if Franchisee (defined below) |
| and we are parties to |
| an Initial Fee Promissory Note and/or an Incentive Promissory Note in connection with the Franchise |
| Agreement (as amended, modified, restated or supplemented from time to time, the "Note(s)" and together |
| with the Franchise Agreement referred to as the "Agreements"), as consideration for the Note(s), each of the |
| undersigned personally and unconditionally (a) guarantees to us and our successors and assigns, for the Term |
| of the Agreements and afterward as provided in the Agreements, that |
| ("Franchisee") will punctually pay and perform each and every undertaking, |
| agreement, and covenant set forth in the Agreements and (b) agrees to be personally bound by, and personally |
| liable for the breach of, each and every provision in the Agreements, both monetary obligations and obligations |
| to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, |
| including the non-competition, confidentiality, and transfer requirements. |
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the Guaranty and Assumption of Obligations can be amended. The document states that the Franchise Agreement can be amended, modified, restated, or supplemented from time to time.
The Guaranty and Assumption of Obligations is given in consideration of the execution of the Franchise Agreement. The guarantor personally and unconditionally guarantees that the franchisee will punctually pay and perform every undertaking, agreement, and covenant set forth in the Agreements for the term of the agreement.
This guarantee extends to monetary obligations, obligations to take or refrain from specific actions, and obligations to engage or refrain from engaging in specific activities, including non-competition, confidentiality, and transfer requirements. Therefore, because the agreement can be amended, so can the Guaranty and Assumption of Obligations.