What must the Baymont Inn Suites Franchisee confirm with the Lender regarding the TPA's execution and delivery?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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 TPA) that the TPA has been fully executed and sent to Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the franchisee must confirm with the lender that the Three-Party Agreement (TPA) has been fully executed and sent to Baymont Inn Suites. This confirmation should occur at the closing of the loan or at another time requested by the lender if the loan closed before the TPA execution.
This requirement ensures that Baymont Inn Suites is aware that the lender has officially agreed to the terms of the TPA, which outlines the lender's responsibilities and obligations should they take possession of the Baymont Inn Suites franchise. The TPA protects Baymont Inn Suites by ensuring a smooth transition and continued operation of the franchise under the lender's control if the franchisee defaults.
Baymont Inn Suites retains the discretion to withhold its signature and delivery of the TPA until it receives satisfactory evidence that the loan has been successfully closed. This condition protects Baymont Inn Suites by ensuring the financing is in place before committing to the TPA, aligning the agreement's effectiveness with the loan's completion.