Can the Holder grant extensions or renewals on the Note for Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Holder reserves the right to modify the terms of this Note, grant extensions, renewals, releases, discharges, compositions, and compromises with any party liable on this Note, with or without notice to or the consent of, or discharging or affecting the obligations of any other party liable under this instrument.
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 modify the terms of the Note, including granting extensions and renewals. The Holder can do so without notifying or obtaining consent from any party liable on the Note and without affecting the obligations of other liable parties.
This provision provides flexibility to the Holder in managing the Note. For a prospective Americas Best Value Inn franchisee, this means that the terms of the Note, including its duration, are subject to change at the discretion of the Holder. While this could potentially benefit the franchisee if the Holder grants a favorable extension or renewal, it also introduces uncertainty, as the Holder is not obligated to do so.
It is important for a franchisee to understand that the Holder's rights are broad and can be exercised without the franchisee's consent. Therefore, before signing the Note, a prospective Americas Best Value Inn franchisee should carefully consider the potential implications of these terms and seek legal counsel to fully understand their rights and obligations.