What does the term 'Parties' refer to in the Three-Party Agreement for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Three-Party Agreement (the "Agreement") is made and entered into as of, 20 by |
|---|
| and among |
| ("Lender"); |
| ("Franchisee"); and |
| ("Franchisor" or "Company"). |
| Lender, Franchisee, and Franchisor each are referred to as a "Party" and collectively are referred to as the |
| "Parties." |
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the term 'Parties' in the context of the Three-Party Agreement refers collectively to the Lender, the Franchisee, and the Franchisor (or Company). Each of these entities is individually referred to as a 'Party.' This agreement is made and entered into by and among these three entities.
The Three-Party Agreement outlines the relationship and respective rights and obligations of the lender providing financing to the franchisee, the franchisee operating the Hawthorn Suites By Wyndham location, and Hawthorn Suites By Wyndham itself as the franchisor. This agreement is crucial when a franchisee requires financing to establish or operate their franchise, as it establishes how the lender's interests are protected in relation to the franchise agreement.
Specifically, the agreement addresses the lender's rights regarding the franchise agreement as collateral security for the loan provided to the franchisee. It also covers the consent of Hawthorn Suites By Wyndham to the collateral assignment of the franchise agreement and the granting of certain rights to the lender, subject to specific terms and conditions outlined in the agreement. This ensures that all parties are aligned and aware of their respective roles and responsibilities in the financing and operation of the Hawthorn Suites By Wyndham franchise.