Nobel Lodging, Inc. v. Holiday Hospitality Franchising, Inc.

Miller, Judge.

Nobel Lodging, Inc. and Holiday Inns Franchising, Inc. 1 entered into a licensing agreement allowing Nobel to use Holiday’s motel system at an inn near Daytona Beach, Florida. Nobel’s six shareholders personally guaranteed its obligations of payment and performance under the license agreement. Nobel failed to improve the inn’s physical facilities as promised in the license agreement, which default it did not cure despite demands from Holiday. Some months after Holiday terminated the agreement, Holiday notified the guarantors of the default and termination and demanded payment of…