In the context of the receipt, what is the definition of 'Co-Makers' for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms "Holder," "Maker," and "Co-Maker" shall be deemed to include their respective heirs, successors, legal representatives, and assigns, whether by voluntary action of the parties or by operation of law. All references to "Maker" and "Co-Maker" shall mean and include the named Maker, Co-Maker(s), and all guarantors, sureties and accommodation parties signing or endorsing this Note, each of whom shall be jointly, severally and primarily liable as the maker of this Note.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, specifically within the context of receipts and related financial instruments for Hawthorn Suites By Wyndham, the term "Co-Maker" is comprehensively defined. The definition extends to include not only the initially named Co-Maker but also their heirs, successors, legal representatives, and assigns, regardless of whether these transitions occur through voluntary actions or by operation of law. This ensures that the obligations and responsibilities associated with the role of Co-Maker are not easily evaded or dissolved.
Furthermore, the definition explicitly encompasses all guarantors, sureties, and accommodation parties who sign or endorse the relevant note. This broad inclusion is crucial because it clarifies that anyone providing a guarantee or acting as a surety for the financial instrument is considered a Co-Maker. This ensures that all parties involved in securing the financial obligation are jointly, severally, and primarily liable as the maker of the note. This means that each Co-Maker is independently responsible for the full amount of the debt, and the lender can pursue any one or all of them to recover the outstanding balance.
For a prospective Hawthorn Suites By Wyndham franchisee, this definition has significant implications. If the franchisee is required to have a Co-Maker for any financial instrument related to the franchise agreement (such as a loan or a note), it is essential to understand the full extent of the Co-Maker's liability. The Co-Maker's responsibility is not limited to the initial term of the agreement but extends to any renewals, modifications, or extensions. Moreover, the Co-Maker's liability is joint and several, meaning they can be held responsible for the entire debt, even if other Co-Makers exist. Therefore, franchisees should carefully consider the financial implications and ensure that any potential Co-Maker fully understands the risks and obligations involved.