Can the Holder of the Note for Sonesta Simply Suites assign the Note?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Note, the term "Holder" shall include any subsequent holder of or participant in this Note.
Holder may assign this Note in whole or in part.
Holder may make available to any proposed assignee or participant all credit and financial data with respect to Maker as may be in the possession of Holder.
Maker agrees to provide any additional information that any proposed assignee or participant may reasonably request.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Holder of the Note has the right to assign the Note, either in full or partially. This means that the original lender or note holder can transfer their rights and obligations under the Note to another party.
Additionally, the Holder is permitted to share credit and financial information about the Maker (the franchisee) with potential assignees or participants. The franchisee, as the Maker, agrees to provide any additional information reasonably requested by these potential assignees or participants.
This clause provides flexibility for Sonesta Simply Suites' lender, allowing them to manage their investment and potentially free up capital. For the franchisee, it means that they may be dealing with a different entity during the term of the loan, and they should be prepared to provide financial information to potential assignees if requested.