Can the Holder assign the Note for Americas Best Value Inn in part?
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 in whole or in part. This means that Sonesta RL Hotels Franchising Inc., as the Holder, can transfer all or a portion of its rights and obligations under the Note to another party.
For a prospective Americas Best Value Inn franchisee, this clause indicates that the financial obligations associated with the franchise agreement could be managed by a third party at some point. It is important to understand that if the Note is assigned, the franchisee will be dealing with a new entity regarding payments and other obligations tied to the Note.
Furthermore, the document states that the Holder may provide any proposed assignee or participant all credit and financial data with respect to the Maker, and the Maker agrees to provide any additional information that any proposed assignee or participant may reasonably request. This means that Americas Best Value Inn can share the franchisee's financial information with potential assignees, and the franchisee is obligated to provide additional information if requested, which is a standard practice in financial agreements to facilitate due diligence during assignment.