Who is included in the term 'Holder' as used in the Note for Sonesta Simply Suites?
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 Franchise Disclosure Document, regarding the Note, the term "Holder" includes any subsequent holder of or participant in the Note for Sonesta Simply Suites. This means that the rights and responsibilities of the original holder can be transferred to another party who becomes a holder or participant.
This provision allows the original holder to assign the Note, either wholly or partially, to another entity. This could occur if the original holder needs to free up capital or wants to reduce its risk exposure. The holder is also permitted to share credit and financial data about the maker (the franchisee) with potential assignees or participants, ensuring they can make an informed decision. The franchisee agrees to provide any additional information reasonably requested by a proposed assignee or participant.
This clause provides flexibility for Sonesta Simply Suites (or its affiliates) as the holder of the Note, allowing them to manage their financial interests and obligations related to the franchise agreement. For a prospective franchisee, it is important to understand that the terms of the Note can be transferred to another party, and they may be required to provide financial information to potential assignees or participants.