What waivers are included in the Americas Best Value Inn Notes regarding payment and notices?

According to the 2025 Americas Best Value Inn Franchise Disclosure Document, when signing the promissory notes, franchisees waive certain rights related to payment and notices. Specifically, both the Initial Fee Note and the Incentive Note include a waiver of presentment, demand for payment, protest, notices of protest, dishonor, and nonpayment. This means that Americas Best Value Inn is not required to formally present the note for payment, demand immediate payment, or issue formal protests if payment is not made.

In practical terms, this waiver simplifies the collection process for Americas Best Value Inn if a franchisee defaults on their payment obligations. The franchisee gives up the right to receive certain notices or demand specific actions from Americas Best Value Inn related to the notes. This is a fairly standard practice in financing agreements, as it streamlines the process for the lender in case of default.

The FDD also states that Americas Best Value Inn may grant renewals, extensions, modifications, compromises, releases, or discharges of other parties without notice to any guarantor or co-maker. This means that Americas Best Value Inn can make changes to the loan terms or release other parties from their obligations without informing the franchisee's guarantor. This could potentially increase the guarantor's risk, as they remain responsible for the debt even if the terms are altered or other parties are released. Franchisees should carefully consider the implications of these waivers and guarantees before signing the Franchise Agreement and related promissory notes.