What additional agreement must a Baymont Inn Suites franchisee sign to receive the Development Incentive?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
To receive the Development Incentive, you and your principals, as co-makers, must sign a Development Incentive Note, which will specify the amount of the incentive, in the form attached to Exhibit C-1 when you sign and deliver to us the Franchise Agreement. If you and/or your principals are residents of community property or certain other states, your and /or their spouses must also co-sign the Development Incentive Note. In addition, you must sign an addendum to the Franchise Agreement, agreeing to make all payments due under the Franchise Agreement and ancillary agreements through electronic funds transfers through the ACH (automated clearing house) system. You must provide us with a current balance sheet, loan documents and other information we request detailing the total cost of the Facility, the amount being financed, and your equity investment in the Facility. If we offer you a Development Incentive, you may not be eligible for any reduction in Initial or Recurring Fees (see Items 5, 6 and 15). The Development Incentive program may be modified, limited, extended, or terminated at any time without advance notice or amendment of this Franchise Disclosure Document.
Source: Item 10 — FINANCING (FDD pages 59–61)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, to receive the Development Incentive, a franchisee and their principals must sign a Development Incentive Note. This note specifies the incentive amount and is attached as Exhibit C-1 to the Franchise Agreement. If the franchisee or their principals reside in a community property state, their spouses must also co-sign the Development Incentive Note.
Additionally, the franchisee must sign an addendum to the Franchise Agreement, agreeing to make all payments due under the Franchise Agreement and ancillary agreements through electronic funds transfers via the ACH (automated clearing house) system. The franchisee must also provide Baymont Inn Suites with a current balance sheet, loan documents, and other requested information detailing the total cost of the facility, the amount being financed, and the franchisee's equity investment in the facility.
It's important to note that if Baymont Inn Suites offers a Development Incentive, the franchisee may not be eligible for any reduction in Initial or Recurring Fees. The Development Incentive program can be modified, limited, extended, or terminated at any time without prior notice or amendment to the Franchise Disclosure Document, so prospective franchisees should confirm the current terms and conditions with Baymont Inn Suites before making any decisions.