factual

How will the Surestay Hotel By Best Western agreement be interpreted regarding the drafting of provisions?

Surestay_Hotel_By_Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

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  • 17.17 Successors and Assigns. The terms and provisions of this Agreement will inure to the benefit of and be binding on the permitted successors and assigns of the Parties.
  • 17.18 Our Delegation of Rights and Responsibility. You agree that we have the right to delegate the performance of any portion or all of our obligations under this Agreement to thirdparty designees, whether these designees are our agents or independent contractors with whom we have contracted to perform these obligations. If we do so, such third-party designees will be obligated to perform the delegated functions for you in compliance with this Agreement.

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ADDENDUM TO FRANCHISE AGREEMENT

Effective Date: Facility Number: Franchisor Name: SureStay, Inc., an Arizona Corporation Brand: SureStay [ ] (excluding any other brands or product lines containing "SureStay" in the name) Initial Approved Hotel Name (Trade Name): Franchisee Name and Address (Attn: Principal Legal Correspondent): Address of Hotel: Initial Number of Approved Guest Rooms: Construction Completion Date: Renovation Completion Date: Required Opening Date: [Due three (3) months from the Effective Date] Expiration Date: All Properties —fifteen (15) years from Opening or such other Term we may approve Change of Ownership — Remaining Term under the existing franchise agreement or such other Term we may approve Application Fee $2,500 Initial Franchise Fee: $25,000 plus $100 per room over 100 rooms Monthly Fees: Monthly Sales and Marketing Fee: Four percent (4.0%) of the Hotel's Gross Rooms Revenue for the preceding calendar month. The

Monthly Sales

Source: Item 23 — Receipts (FDD pages 88–286)

What This Means (2025 FDD)

The 2025 Franchise Disclosure Document for Surestay Hotel By Best Western includes a standard clause regarding successors and assigns, stating that the franchise agreement's terms will benefit and bind the permitted successors and assigns of both parties. This means that if either Surestay Hotel By Best Western or the franchisee transfers their rights or obligations to another party in a permissible way (e.g., through a sale of the business), the new party will be subject to the original agreement.

Additionally, Surestay Hotel By Best Western retains the right to delegate its responsibilities under the agreement to third-party designees, who could be agents or independent contractors. If Surestay Hotel By Best Western delegates certain functions, these designees are required to perform those functions in compliance with the existing franchise agreement. This provides Surestay Hotel By Best Western with flexibility in managing its obligations and potentially leveraging specialized expertise.

For franchisees in Washington state, a rider to the franchise agreement specifies that the Washington Franchise Investment Protection Act will take precedence in case of any conflict of laws. This act may also supersede the franchise agreement based on court decisions, especially concerning termination and renewal of the franchise. This ensures that franchisees in Washington are protected by state-specific franchise laws, which may offer additional rights or protections beyond those in the standard agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.