factual

What must the Baymont Inn Suites franchisee confirm with the lender regarding the LNA?

Q: What must the Baymont Inn Suites franchisee confirm with the lender regarding the LNA?

- 6. Franchisee acknowledges that the LNA shall not be effective and binding on Franchisor unless and until Franchisor receives at its home office in Parsippany, New Jersey an original LNA signed by authorized representatives of the Franchisee and of each member of Lender Group. Franchisor will offer the LNA to Lender Group subject to such condition as to effectiveness. Franchisee undertakes to confirm with Lender at the closing of the Loan, or at such other time as may be requested by Lender (if the Loan has closed prior to the execution of the LNA) that the LNA has been fully executed and sent to Franchisor. Franchisor may, in its sole discretion, withhold its signature and delivery of the LNA until it has received evidence satisfactory to Franchisor that the Loan has closed. Source: Item 23 — RECEIPTS (FDD pages 97–443)

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Franchisee acknowledges that the LNA shall not be effective and binding on Franchisor unless and until Franchisor receives at its home office in Parsippany, New Jersey an original LNA signed by authorized representatives of the Franchisee and of each member of Lender Group. Franchisor will offer the LNA to Lender Group subject to such condition as to effectiveness. Franchisee undertakes to confirm with Lender at the closing of the Loan, or at such other time as may be requested by Lender (if the Loan has closed prior to the execution of the LNA) that the LNA has been fully executed and sent to Franchisor. Franchisor may, in its sole discretion, withhold its signature and delivery of the LNA until it has received evidence satisfactory to Franchisor that the Loan has closed.

Source: Item 23 — RECEIPTS (FDD pages 97–443)

What This Means (2025 FDD)

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, a franchisee seeking financing must ensure that the Lender Notification Agreement (LNA) has been fully executed and sent to Baymont Inn Suites. Specifically, the franchisee must confirm with the lender at the closing of the loan, or at another time requested by the lender if the loan closes before the LNA execution, that the LNA has been signed by authorized representatives of both the franchisee and each member of the Lender Group and sent to Baymont Inn Suites's home office in Parsippany, New Jersey.

This requirement ensures that Baymont Inn Suites is formally notified and agrees to the financing terms. The franchisor retains the discretion to withhold its signature on the LNA until it receives satisfactory evidence that the loan has been closed. This condition protects Baymont Inn Suites by ensuring that the financing is finalized before they commit to the terms of the LNA, which typically involves certain obligations and potential liabilities for the franchisor.

For a prospective Baymont Inn Suites franchisee, this means actively managing the communication between the lender and the franchisor. It is crucial to follow up with the lender to confirm that the fully executed LNA has been sent to Baymont Inn Suites. Failure to do so could delay or complicate the financing process, as Baymont Inn Suites may not consider the LNA effective until this confirmation is received. This process highlights the importance of diligent oversight and proactive communication in securing financing for a Baymont Inn Suites franchise.

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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