Can the Holder assign the Note for Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- d.
As used in this Note, the term "Holder" shall include any subsequent holder of or participant in this Note.
Holder may assign this Note in whole or in part.
Holder may make available to any proposed assignee or participant all credit and financial data with respect to Maker as may be in the possession of Holder.
Maker agrees to provide any additional information that any proposed assignee or participant may reasonably request.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the 'Holder' of the Note has the right to assign the Note, either in whole or in part. The term 'Holder' includes any subsequent holder of or participant in the Note. This means that Sonesta RL Hotels Franchising Inc., as the initial holder, can transfer its rights and interests in the Note to another party.
This clause provides Americas Best Value Inn with flexibility in managing its financial instruments. It allows them to sell or transfer the Note to a third party, potentially to raise capital or manage risk. For a franchisee ('Maker'), this means that the party to whom they owe the debt could change over the term of the Note.
The document also states that the Holder may share the Maker's credit and financial data with any proposed assignee or participant. The Maker agrees to provide any additional information that any proposed assignee or participant may reasonably request. This ensures that the potential assignee has sufficient information to evaluate the Note before accepting the assignment.
Prospective Americas Best Value Inn franchisees should be aware that the Note they sign may be transferred to another party, and they may be required to provide financial information to potential assignees. However, the terms of the Note itself should remain the same, regardless of who holds it.