What is the guarantor required to do upon notice of default by the Baymont Inn Suites franchisee?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon default by Franchisee and notice from Company, we will immediately make each unpaid payment and perform, or cause Franchisee to perform, each unperformed obligation of Franchisee under the Primary Agreements. Without affecting our obligations under this Guaranty, without notice to us, Company may extend, modify or release any indebtedness or obligation of Franchisee, or settle, adjust or compromise any claims against Franchisee. We waive notice of amendment of the Agreements. We acknowledge that the provisions of Section 17 of the Franchise Agreement, including but not limited to Section 17.4 (Remedies) and Section 17.6 (Choice of Law; Venue; Dispute Resolution, including but not limited to Section 17.6.4 (Waiver of Jury Trial)), apply to this Guaranty.
Upon the death of an individual guarantor, the estate of the guarantor will be bound by this Guaranty for obligations of Franchisee to Company existing at the time of death, and the obligations of all other guarantors will continue in full force and effect.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, a guarantor plays a crucial role in ensuring the franchisee's obligations are met. If the Baymont Inn Suites franchisee defaults and receives a notice from the company, the guarantor is obligated to immediately make any unpaid payments and ensure the performance of any unfulfilled obligations under the Primary Agreements. This means the guarantor must step in to cover any financial or operational shortcomings of the franchisee.
Baymont Inn Suites retains the right to modify or release any obligations of the franchisee without affecting the guarantor's responsibilities. The guarantor also waives any notice of amendments to the agreements. This indicates that the guarantor's obligations are broad and not contingent on specific notifications or changes to the agreement terms. The guarantor is essentially providing a blanket assurance that the franchisee's duties will be fulfilled, regardless of circumstances.
The guaranty specifies that Section 17 of the Franchise Agreement, including remedies, choice of law, venue, and dispute resolution, applies to the Guaranty. This clause ensures that any disputes related to the guaranty will be subject to the same legal framework as the Franchise Agreement itself, including a waiver of jury trial. In the event of the death of a guarantor, their estate remains bound by the Guaranty for the franchisee's obligations existing at the time of death, and the obligations of any other guarantors remain in full effect.