Does Baymont Inn Suites have any obligation to modify its standard form of LNA?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee acknowledges that Franchisor has no obligation to modify its standard form of LNA and shall have no liability to Franchisee or any guarantor as result of the inability of Lender Group and Franchisor to reach agreement on the language of the LNA or the failure of Lender Group and Franchisor to execute the LNA for any other reason. Franchisee and each guarantor jointly and severally release any and all causes of action and claims against Franchisor arising from the furnishing to Lender Group information about the Facility, the Franchise Agreement or Franchisee under this request or the LNA, or the denial of the Loan or refusal to close the Loan arising from the inability of the parties to agree upon and execute a mutually-acceptable LNA, or for any other reason.
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- Franchisee covenants to forward to any member or members of Lender Group copies of all default notices from Franchisor sent to Franchisee that the Loan documents require that such member of Lender Group receive.
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- 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 the 2025 Baymont Inn Suites Franchise Disclosure Document, Baymont Inn Suites has no obligation to modify its standard form of Lender's Notice Agreement (LNA). The document explicitly states that Baymont Inn Suites will not be liable if an agreement cannot be reached with a lender group regarding the LNA's language or if the LNA is not executed for any reason. This means a prospective franchisee cannot depend on Baymont Inn Suites to alter its LNA to satisfy a lender's requirements.
For a potential Baymont Inn Suites franchisee, this is a crucial point to consider during financing. If a lender requires specific modifications to the LNA that Baymont Inn Suites is unwilling to make, the franchisee could face difficulties in securing financing. The franchisee bears the risk of any failure to close the loan due to disagreements over the LNA.
Furthermore, the franchisee releases Baymont Inn Suites from any claims or actions arising from providing information to the lender group or from the denial of a loan due to the inability to agree upon and execute a mutually acceptable LNA. The franchisee also agrees to forward any default notices from Baymont Inn Suites to the lender, ensuring the lender is informed of any issues with the franchise agreement. The LNA only becomes effective once Baymont Inn Suites receives a signed original from both the franchisee and the lender group at its headquarters in Parsippany, New Jersey, and Baymont Inn Suites may withhold its signature until it confirms the loan has closed.