Can a successive assignee enforce the Springhill Suites By Marriott Guaranty?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
MICC may sell, assign or transfer all or any portion of the indebtedness, obligations and liabilities of Borrower and [Member / Partner], and, in such event, each and every successive assignee, transferee or holder of all or any part of said indebtedness, obligations or liabilities shall have the right to enforce this Guaranty as fully as if such assignee, transferee or holder were named herein.
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, MICC (presumably Marriott International Credit Corporation) has the right to sell, assign, or transfer any portion of the borrower's debts, obligations, and liabilities.
In the event of such a sale, assignment, or transfer, any subsequent assignee, transferee, or holder of these debts, obligations, or liabilities has the right to enforce the Guaranty. This enforcement right is equivalent to the right MICC would have had if it were explicitly named in the Guaranty.
This clause ensures that if Springhill Suites By Marriott transfers the financial obligations related to a franchise agreement, the new holder of those obligations can still rely on the Guaranty to secure those obligations. This provides flexibility for Springhill Suites By Marriott in managing its financial assets and provides assurance to potential assignees that the Guaranty remains enforceable.