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Where must the original LNA be received by Baymont Inn Suites for it to be effective and binding?

Q: Where must the original LNA be received by Baymont Inn Suites for it to be effective and binding?

- 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, the Lender Group and Franchisor must agree on the language of the LNA (Lender Notice Agreement). Baymont Inn Suites is not obligated to modify its standard LNA form and has no liability if an agreement isn't reached. The franchisee releases Baymont Inn Suites from claims arising from information provided to the Lender Group or the denial of a loan due to failure to agree on the LNA.

For the LNA to be effective and binding on Baymont Inn Suites, the franchisor must receive an original LNA signed by authorized representatives of the franchisee and each member of the Lender Group. This original LNA must be received at Baymont Inn Suites's home office in Parsippany, New Jersey. Baymont Inn Suites may withhold its signature on the LNA until it receives satisfactory evidence that the loan has closed.

This requirement ensures that Baymont Inn Suites has a formal record of the agreement and can verify that all parties have agreed to its terms. It also protects Baymont Inn Suites by allowing them to ensure the loan has closed before committing to the terms of the LNA. The franchisee is responsible for confirming with the lender that the LNA has been fully executed and sent to Baymont Inn Suites, reinforcing the franchisee's role in ensuring the LNA is properly finalized.

Prospective franchisees should be aware of this requirement and ensure that the LNA is properly executed and delivered to Baymont Inn Suites's home office to avoid any delays or complications with their financing. Franchisees should also confirm with their lender that the LNA has been sent to Baymont Inn Suites.

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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