factual

What is the effective date of the Three-Party Agreement for a Baymont Inn Suites franchise?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

This Three-Party Agreement (the "Agreement") is made and entered into as of, 20 by
and among
("Lender");
("Franchisee"); and
("Franchisor" or "Company").
Lender, Franchisee, and Franchisor each are referred to as a "Party" and collectively are referred to as the
"Parties."
RECITALS
A.
The Franchise Agreement. Franchisee and Franchisor entered into that certain franchise,
license or membership agreement, dated, 20
(the "Franchise Agreement"), related to a
guest lodging facility located at, designated as Unit #
(the "Facility"). The Franchise
Agreement and certain ancillary agreements related to the Franchise Agreement collectively are referred to
as the "Primary Agreements." Pursuant to the Primary Agreements, Franchisee operates the Facility as a
® franchised location. Capitalized terms used and not defined in this Agreement shall have the
meanings given to them in the Franchise Agreement.
B.
The Loan. Lender has advanced or is about to advance funds to Franchisee and desires to be
granted certain rights in respect of the Franchise Agreement
as part of the collateral security for its loan.
Franchisee has requested that Company consent to the conveyance of a security interest in the Franchise
Agreement and grant certain other rights to Lender. Company will issue its consent to the collateral assignment
of the Franchise Agreement and will grant such rights subject to the terms and
conditions
of this Agreement
and the undertakings by Lender and Franchisee set forth below.
AGREEMENT
NOW,
THEREFORE,
in
consideration
of
the
foregoing
and
the
terms,
conditions,
representations, promises, covenants, and consideration set forth below, the sufficiency of which are hereby
acknowledged as good, valuable, and adequate consideration, and intending to be legally bound, the Parties
agree as follows:
1.
Status of Primary Agreements.
1.1
Company and Franchisee represent that the Primary Agreements
are
in
full
force
and
effect
and
there
are
no
uncured
notices
of
default issued by Company or Franchisee under the Primary Agreements as of
the date of thisAgreement.

Source: Item 22 — CONTRACTS (FDD pages 96–97)

What This Means (2025 FDD)

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Three-Party Agreement is made and entered into as of a specific date in 20--. The exact day and month are not specified in the agreement, only the year. This agreement involves the lender, the franchisee, and Baymont Inn Suites as the franchisor.

The Three-Party Agreement outlines the rights and responsibilities of each party, especially concerning the loan the franchisee obtains to operate the Baymont Inn Suites facility. It references a franchise agreement between the franchisee and Baymont Inn Suites, which is related to a guest lodging facility. The agreement confirms that the primary agreements are in full force and effect, with no outstanding default notices as of the agreement date.

For a prospective Baymont Inn Suites franchisee, this means the Three-Party Agreement is crucial when securing financing. It ensures that the lender has certain rights related to the franchise agreement as collateral for the loan. The franchisee should pay close attention to all dates and ensure they are accurately recorded on all copies of the agreement.

Since the specific date is left blank, a potential franchisee should confirm the exact effective date with all parties involved—the lender, Baymont Inn Suites, and themselves—when the agreement is finalized to avoid any future discrepancies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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