What is being guaranteed in the Guaranty of Surestay Hotel By Best Western Franchise Agreement?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Best Western International, Inc., located at 6201 N. 24th Parkway, Phoenix, Arizona 85016 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties of SureStay, Inc., located at 6201 N. 24th Parkway, Phoenix, Arizona 85016 (the "Franchisor") under its franchise registration in each state where its franchise is registered or exempt from registration, as applicable, and under its Franchise Agreement as identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended, from time to time. This guaranty continues until all such obligations of the Franchisor under the franchise registration or franchise exemption (as applicable) and Franchise Agreement are satisfied or until liability of the Franchisor under the Franchise Agreement has been completely discharged, whichever first occurs. Guarantor is not discharged from liability if a claim by the franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and on its successors and assigns.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Guaranty of Performance ensures that Best Western International, Inc. will assume the duties of SureStay, Inc. under its franchise registration in each state where its franchise is registered or exempt. This also applies to the Franchise Agreement as identified in its 2025 Franchise Disclosure Document, including any amendments, modifications, or extensions.
This guaranty remains in effect until all obligations of SureStay, Inc. under the franchise registration or exemption and Franchise Agreement are satisfied, or until the liability of SureStay, Inc. under the Franchise Agreement is completely discharged. Best Western International, Inc., as the Guarantor, will not be released from liability if a franchisee's claim against SureStay, Inc. remains outstanding.
In practical terms, this means that if Surestay Hotel By Best Western fails to meet its obligations under the franchise agreement, Best Western International, Inc. steps in to fulfill those responsibilities. This provides an additional layer of security for franchisees, as the larger and more established Best Western International, Inc. is backing the obligations of its subsidiary, SureStay, Inc. This guarantee is binding on Best Western International, Inc. and its successors and assigns, offering long-term assurance to franchisees.