Is the Americas Best Value Inn initial fee promissory note secured?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | Issuance Date: March 31, | 2025 See Exhibit A for Sonesta RL Hotels Franchising Inc.'s registered agents authorized to receive service of process. I have received a disclosure document dated March 31, 2025, that included the following Exhibits: | | | | Exhibit A - | State Administrators/Agents for Service of Process | Exhibit F - Exhibit G - | Financial Statements Guaranty of Performance | | Exhibit B - Exhibit C-1 - | Franchise Agreement Initial Fee Promissory Note | Exhibit H - Exhibit I - | List of Current Franchisee Outlets List of Franchisee Outlets Terminated, Not Renewed, or Who Otherwise Left the System | | Exhibit C-2 - | Development Incentive Promissory Note | Exhibit J - Exhibit K - | Sample General Release Consent to Transfer | | Exhibit D | Table of Contents of Brand Manual | Exhibit L | State Addenda and Agreement Riders | | Exhibit E | Representations and | Exhibit M | Receipts | | - | Acknowledgement Statement | - | | | Prospective Franchisee: | | If an individual: | | | If a business entity: | | | | | Name of Business Entity | | Print Name: | | | Signature: | | | | | Title: | | Dated: | | | Print Name: | | | (Do not leave blank) | | Dated: | (Do not leave blank) Property located (or to be built) at | | | | | (street address) | (city) | (state) (zip code) | Please enter the address of the Property, sign this copy of the receipt, print the date on which you received this disclosure document, and return it, by mail or email, to Sonesta RL Hotels Franchising Inc., 400 Centre Street, Newton, Massachusetts 02458, email: franchiselegal@sonesta.com.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not possible to determine from the provided excerpts whether the initial fee promissory note for an Americas Best Value Inn franchise is secured. While Exhibit C-1 is identified as the Initial Fee Promissory Note, the document excerpts do not describe if the note is secured by any collateral.
However, Exhibit B is titled "Collateral Assignment of Online Presences", suggesting that Americas Best Value Inn may take collateral in some form related to the online presence of the franchise. This exhibit indicates that the assignment is effective as of the Franchise Agreement's effective date between Sonesta RL Hotels Franchising Inc. and the franchisee, granting the franchisee the right to operate an Americas Best Value Inn hotel at the specified Hotel Premises.
To fully understand the terms of the initial fee promissory note, a prospective Americas Best Value Inn franchisee should review the complete Exhibit C-1 and discuss with the franchisor whether the note is secured, and if so, what specific assets serve as collateral. Understanding the security of the note is crucial for assessing the financial risk associated with the franchise investment.