What is the purpose of the Americas Best Value Inn initial fee promissory note?
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 |
- a.
This Note is not intended to be exhaustive in nature, nor is it intended to set forth all of Holder's rights.
It does not modify, replace, or affect any other rights, default or termination notices under the Agreement, or any other agreement with Holder regarding Maker's Hotel.
Holder does not waive any of its legal or equitable rights (including the right to specify additional defaults) or remedies.
- e.
If this Note is collected through an attorney at law, Holder shall be entitled to collect reasonable attorneys' fees and all costs of collection.
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Exhibit C-1 is the Initial Fee Promissory Note. While the excerpts list the exhibit, they do not describe the note's specific purpose or terms. However, the document does state that the note does not modify, replace, or affect any other rights, default or termination notices under the Franchise Agreement, or any other agreement with the Holder regarding the Maker's Hotel. The Holder does not waive any of its legal or equitable rights or remedies.
Several clauses within the document outline the legal and financial responsibilities of the maker (franchisee) and the holder (Americas Best Value Inn). These include conditions under which the holder can collect attorney's fees and costs of collection, waivers of certain legal rights by the maker, and the holder's right to modify the terms of the note or assign it to another party. The note is governed by the laws of the Commonwealth of Massachusetts, and any legal action must be brought in that state.
Prospective franchisees should carefully review the full Initial Fee Promissory Note (Exhibit C-1) within the FDD and seek legal counsel to fully understand their obligations, payment terms, and the circumstances under which Americas Best Value Inn can pursue legal remedies. Understanding these conditions is crucial before signing the franchise agreement.