Under the Baymont Inn Suites Guaranty, what does 'Franchise Agreement' mean?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
To induce Baymont Franchise Systems, Inc., its successors, assigns, and affiliates ("you") to sign the Franchise Agreement, the undersigned, jointly and severally ("we," "our," or "us"), irrevocably and unconditionally (i) warrant to you that representations and warranties in the Agreements are true and correct as stated, and (ii) guaranty that Franchisee's obligations under the Agreements, including any amendments, will be punctually paid and performed. "Franchise Agreement" means the franchise agreement to which this Guaranty is attached pertaining to the Unit indicated above, and the ancillary agreements to the Franchise Agreement (such ancillary agreements and the Franchise Agreement, collectively, the "Agreements"). "Franchisee" means the party designated as the Franchisee in the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites' 2025 Franchise Disclosure Document, the 'Franchise Agreement' within the context of the Guaranty refers to the specific franchise agreement to which the Guaranty is attached. This agreement pertains to the Baymont Inn Suites unit indicated in the document. Furthermore, the definition of 'Franchise Agreement' also encompasses any ancillary agreements that are related to the primary Franchise Agreement. Collectively, the Franchise Agreement and these ancillary agreements are termed the 'Agreements.'
This definition is crucial because the Guaranty obligates the undersigned to ensure that the Franchisee's obligations under all 'Agreements' are met. This includes not only the main Franchise Agreement but also any supplementary contracts that might be in place. For a prospective Baymont Inn Suites franchisee, this means that any financial or performance guarantees they provide will extend to all aspects of their contractual relationship with Baymont Inn Suites, not just the core franchise terms.
The Guaranty ensures that if the Franchisee defaults, the guarantor(s) will immediately fulfill the Franchisee's obligations, including payments and performance. The guarantor(s) also waive their right to receive notice of any amendments to the Agreements. This comprehensive guarantee underscores the importance Baymont Inn Suites places on the financial stability and operational commitment of its franchisees, and it highlights the extensive liabilities that guarantors undertake.