Does the Holder reserve the right to modify the terms of the Note for Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Each maker, endorser, guarantor, or accommodation party liable for this Note waives presentment, demand, notice of demand, protest, notice of protest, notice of non-payment, notice of dishonor and diligence in collection.
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.
This Note is being delivered in, is intended to be performed in, shall be construed and interpreted in accordance with, and be governed by the internal laws of, the Commonwealth of Massachusetts, without regard to principles of conflict of laws.
Any legal action necessary to enforce the terms of this Note may be brought by the Holder in the Commonwealth of Massachusetts and the Maker hereby submits to the jurisdiction of any federal or state court in the Commonwealth of Massachusetts.
Any default under the terms of the Agreement or this Note shall be deemed a default of the Agreement and this Note, and the Holder may pursue its remedies as available under the Agreement and this Note.
- f.
THE MAKER AND THE HOLDER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE MAKER AND THE HOLDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS NOTE.
IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.
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. This means that the Holder can make changes to the agreement, such as granting extensions, renewals, releases, discharges, compositions, and compromises with any party liable on the Note. These modifications can be made without notifying or obtaining consent from other parties involved, and without affecting the obligations of other parties liable under the instrument.
This provision gives the Holder significant flexibility in managing the Note and addressing potential issues that may arise during its term. For a prospective Americas Best Value Inn franchisee, this implies that the terms of the Note are not necessarily fixed and could be subject to change at the Holder's discretion. It is important to understand that these modifications can occur without the franchisee's direct consent or even prior notice.
This clause also stipulates that all parties involved waive certain legal rights, such as presentment, demand, notice of demand, protest, notice of protest, notice of non-payment, notice of dishonor, and diligence in collection. Additionally, both the Maker and the Holder waive their right to a jury trial in any action or proceeding related to the Note. This waiver extends to all claims against all parties, even those not directly party to the Note.
Given these conditions, a prospective Americas Best Value Inn franchisee should carefully consider the implications of these terms and seek legal counsel to fully understand their rights and obligations under the Note. Understanding the extent to which the Holder can modify the terms and the waivers of legal rights is crucial for making an informed decision about entering into the franchise agreement.