Does 'Equity Interest' in a Surestay Hotel By Best Western include beneficial interest?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
first became a party to this Agreement, or
- 13.2.1.3 Any Publicly Traded Equity Interest may be Transferred.
- 13.2.2 Permitted Transfers That Require Notice and Consent. We will permit you or any Equity Owner named in the Addendum as of the Effective Date (or any transferee Equity Owner we subsequently approve) to engage in the Permitted Transfers set forth below if any such Permitted Transfer does not result in a change of Control of the Franchisee, the Hotel or the Hotel Site and: (a) the proposed transferee is not a Sanctioned Person or a Competitor; (b) you give us at least sixty (60) days' advance written notice of the proposed Permitted Transfer (including the identity and contact information for any proposed transferee and any other information we may require in order to review the proposed Permitted Transfer); (c) you pay to us a nonrefundable processing fee of One Thousand Dollars ($1,000) with the Permitted Transfer request; (d) you follow our then-current procedure for processing Permitted Transfers; and (e) you execute any documents required by us for processing Permitted Transfers. If a Permitted Transfer listed in Subsection 13.2.2 otherwise qualifies as a Permitted Transfer without notice or consent under Subsection 13.2.1, the provisions of Subsection 13.2.1 will control.
- 13.2.2.1 Affiliate Transfer. You or any Equity Owner may Transfer an Equity Interest or this Agreement to an Affiliate.
- 13.2.2.2 Transfers to a Family Member or Trust. If you or any Equity Owner as of the Effective Date are a natural person, you and such Equity Owner may Transfer an Equity Interest or this Agreement to an immediate family member (i.e., spouse, children, parents, siblings) or to a trust for your benefit or the benefit of the Equity Owner or the Equity Owner's immediate f
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to the 2025 Surestay Hotel By Best Western Franchise Disclosure Document, the definition of 'Equity Interest' is not explicitly detailed within the provided excerpts. However, the document does refer to Equity Owners and the ability to transfer equity interests under certain conditions.
Specifically, Item 23 outlines instances where equity can be transferred, such as to an affiliate, family member, or trust. It also mentions that any publicly traded equity interest may be transferred. These transfers are subject to certain conditions, including that the transfer does not result in a change of control, the transferee is not a sanctioned person or competitor, and the franchisor receives advance written notice and a processing fee of $1,000.
Because the FDD excerpts do not define 'Equity Interest', it is important for a prospective Surestay Hotel By Best Western franchisee to seek clarification from the franchisor regarding the precise definition of 'Equity Interest' and whether it encompasses beneficial interest. Understanding the scope of this term is crucial for making informed decisions about ownership, transferability, and compliance with the franchise agreement.