Who does the term 'Holder' include in this Note for Americas Best Value Inn?

According to Americas Best Value Inn's 2025 Franchise Disclosure Document, the term "Holder" within the context of a Note includes not only the original holder but also any subsequent holder of or participant in the Note. This means that the rights and benefits associated with the Note can be transferred to another party, who then assumes the position of the Holder.

This is significant for a prospective Americas Best Value Inn franchisee because it indicates that the financial obligations and agreements tied to the Note could be assigned to a third party. This third party would then have the same rights as the original Holder, including the right to receive payments and enforce the terms of the Note. The franchisee ('Maker') agrees to provide any additional information that any proposed assignee or participant may reasonably request.

Furthermore, the Holder has the right to assign the Note in whole or in part, and may share the franchisee's credit and financial data with potential assignees or participants. This clause ensures that the Holder has the flexibility to manage their investment and that the franchisee is obligated to cooperate with any due diligence requests from potential assignees. Franchisees should be aware that their financial information may be shared with third parties in the event of an assignment or participation.

In practical terms, this means that the franchisee needs to be prepared to deal with different entities as the Holder of the Note over the term of the agreement. It is important for the franchisee to understand the terms of the Note and the implications of its assignment to ensure compliance and to protect their interests. The franchisee should seek legal counsel to fully understand their obligations and rights in relation to the Note and its potential assignment.