Under what condition may Baymont Inn Suites withhold its signature and delivery of the LNA?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Baymont Inn Suites's 2025 Franchise Disclosure Document, Baymont Inn Suites may withhold its signature and delivery of the LNA (Lender Notice Agreement) until it has received evidence satisfactory to them that the loan has closed. The franchisee acknowledges that the LNA will not be effective or binding on Baymont Inn Suites unless Baymont Inn Suites receives an original LNA signed by authorized representatives of the franchisee and each member of the Lender Group at its home office in Parsippany, New Jersey.
Baymont Inn Suites will offer the LNA to the Lender Group subject to such condition as to effectiveness. The franchisee is responsible for confirming with the lender at the closing of the loan, or at such other time as may be requested by the lender (if the loan has closed prior to the execution of the LNA) that the LNA has been fully executed and sent to Baymont Inn Suites.
This condition protects Baymont Inn Suites by ensuring that the financing is finalized before they are bound by the terms of the LNA. This ensures that Baymont Inn Suites is not obligated under the LNA if the loan falls through, which could potentially create complications or liabilities for the franchise.