Under what conditions will Baymont Inn Suites issue a replacement three-party agreement?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Company will issue a replacement three-party agreement, substantially similar in form to the three-party agreement then-disclosed in Company's franchise disclosure document, if (a) Lender (i)
appoints a third-party servicing agent to service the loan; (ii) transfers the loan to a successor mortgagee that is a financial institution in the business of routinely financing real estate transactions, or (iii) designates a trustee of a trust established in connection with the securitization of the loan; provided, in each case, that such transferee is reasonably acceptable to Company; and (b) Company receives a written request to issue a replacement three-party agreement within 30 days of the date of such appointment or transfer. Company reserves the right to charge an administrative fee for such replacement three-party agreement. Any such replacement three-party agreement shall supersede and replace this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, a replacement three-party agreement will be issued under specific conditions related to the lender's actions. Baymont Inn Suites will issue a replacement agreement, substantially similar to the one disclosed in the current Franchise Disclosure Document, if the lender appoints a third-party servicing agent for the loan, transfers the loan to a successor mortgagee that is a financial institution routinely financing real estate, or designates a trustee of a trust established for loan securitization. In each of these scenarios, the transferee must be reasonably acceptable to Baymont Inn Suites.
To initiate this process, Baymont Inn Suites requires a written request for a replacement three-party agreement within 30 days of the appointment or transfer. Baymont Inn Suites also reserves the right to charge an administrative fee for issuing the replacement agreement.
This replacement agreement then supersedes and replaces the original agreement. This provision ensures that the three-party agreement remains relevant and enforceable even if the original lender's role changes, providing clarity and legal certainty for all parties involved: Baymont Inn Suites, the franchisee, and the lender or its successor.