What actions can Baymont Inn Suites take to resolve a claim of infringement against a franchisee?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Item 14 outlines the actions the company may take to resolve infringement claims. Baymont Inn Suites may resolve a claim of infringement by obtaining a license of the disputed property for the franchisee at Baymont Inn Suites's expense. Alternatively, Baymont Inn Suites can require the franchisee to discontinue using the infringing property. Baymont Inn Suites also has the option of directing the franchisee to modify their use of the property in order to avoid infringing on the rights of others.

Baymont Inn Suites is responsible for defending the franchisee against claims alleging that the franchisee's proper use of the Baymont Inn Suites system infringes upon a third party's rights. This protection extends to trade secrets, patents, copyrights, trademarks, service marks, or trade names. Baymont Inn Suites will cover all losses and expenses incurred by the franchisee in such legal actions, provided the Franchise Agreement remains in full effect and the franchisee cooperates with the defense and resolution of the claim.

This arrangement offers a significant benefit to Baymont Inn Suites franchisees, as it shields them from potentially substantial legal costs and liabilities associated with intellectual property disputes. However, franchisees must be aware that Baymont Inn Suites retains control over the resolution strategy, which may include altering their business practices to avoid infringement, and the franchisee is obligated to cooperate in the resolution process.