Under what conditions can Surestay Hotel By Best Western immediately terminate the agreement?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2 Immediate Termination by Us.
This Agreement may be terminated by us immediately (or at the earliest time permitted by applicable law) if:
14.2.1 after curing any material breach of this Agreement or the Standards, you engage in the same non-compliance within any consecutive twenty-four (24) month period, whether or not the non-compliance is corrected after notice, which pattern of non-compliance in and of itself will be deemed a material breach;
14.2.2 you receive two (2) notices of material default and then commit a third material default in any twelve (12) month period, regardless of whether the two (2) prior defaults have been cured or not;
14.2.3 you fail to pay debts as they become due or admit in writing your inability to pay your debts or you make a general assignment for the benefit of your creditors;
14.2.4 you do not purchase or maintain insurance required by this Agreement;
14.2.5 you do not comply with Subsection 5.1.8, 5.1.29 or 5.1.30;
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, Surestay Hotel By Best Western can terminate the franchise agreement immediately under certain conditions. These conditions include repeated non-compliance, specifically if a franchisee engages in the same material breach of the agreement or standards within a 24-month period after having cured the initial breach.
Surestay Hotel By Best Western can also immediately terminate the agreement if the franchisee receives two notices of material default and then commits a third material default within a 12-month period, regardless of whether the prior defaults were cured. Further grounds for immediate termination include failure to pay debts as they become due, admitting inability to pay debts in writing, or making a general assignment for the benefit of creditors.
Additionally, Surestay Hotel By Best Western can immediately terminate the agreement if the franchisee fails to maintain the required insurance coverage or does not comply with specific subsections related to the franchise agreement. These stipulations highlight the importance of maintaining consistent compliance and financial stability to avoid immediate termination of the Surestay Hotel By Best Western franchise agreement.