Under CommercialDocs you have the option to select Property Type hote/motel and Franchise hote/motel. A franchise hotel/motel loan adds an entire layer of lender protections tied to the franchise agreement, because the hotel’s value, income, and brand standards depend on a third party (the franchisor). A regular hotel/motel loan does not have these franchise‑specific risks, so those extra provisions are not needed. Everything else (note, mortgage, rent assignment, insurance, defaults, remedies, etc.) is largely the same.
You can make that selection on the Property Tab:
and
The Franchise Agreement is expressly defined and incorporated into the loan documents and is included as personal property / UCC collateral. Loss or termination of the franchise can directly impact the lender’s security.The reference diferencences will be in the Loan Agreement and the UCC-1 Exibit B.
Loan Agreement
UCC-1 Exibit B
