What are 'Additional Fees' referring to in the Baymont Inn Suites Franchise Agreement?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional Fees means the fees charged under Section 7.1.2 other than the System Assessment Fee.
I. System Assessment Fees
The System Assessment Fees consist of the "Marketing Contribution" and the "Basic Reservation Fee." The Marketing Contribution is 2.0% of Gross Room Revenues; the Basic Reservation Fee is 1.5% of Gross Room Revenues. We reserve the right, in our sole discretion, to increase or modify the System Assessment Fees for all Chain Facilities from time to time to cover costs (including reasonable direct or indirect overhead costs) related to the services and programs referenced in 7.1.2 but only after consultation with the official advisory board or committee, if any, and upon 30 days prior written notice.
II Additional Fees
A. Loyalty Program Fees
We charge a Loyalty Program Charge for your participation in the Wyndham Rewards or successor guest loyalty program. The Loyalty Program Charge is 4.25% - 5.5% of any amounts on which members of the Loyalty Program earn points or other program currency at the Facility as defined in the Front Desk Guide or any other program rules, which are System Standards. The Loyalty Program Charge may vary within the stated range based on the number of Wyndham Rewards valid enrollments obtained by the Facility during a defined measurement period, or other metric we determine in our sole discretion from time to time, as described in the Front Desk Guide ("Loyalty Metric"). We will proactively match and award members with points or other program currency they earn at the Facility even if they do not present their Wyndham Rewards membership card upon check-in. You will be billed monthly in arrears for points or other program currency awarded to members during the preceding month. If you do not achieve a certain number of Wyndham Rewards valid enrollments during the defined measurement period (or other Loyalty Metric that we may require from time to time), you must pay us a Missed Valid Enrollment Fee of up to $400 per month, as described in the Front Desk Guide. If you do not process a member's points in a timely manner and we must resolve the issue with the member, we will charge you a Loyalty Member Services Administration Fee as described in the Front Desk Guide.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, 'Additional Fees' refer to fees charged under Section 7.1.2 of the Franchise Agreement, excluding the System Assessment Fee. The System Assessment Fees consist of the Marketing Contribution, which is 2.0% of Gross Room Revenues, and the Basic Reservation Fee, which is 1.5% of Gross Room Revenues. Baymont Inn Suites retains the right to increase or modify the System Assessment Fees for all Chain Facilities from time to time to cover costs related to the services and programs referenced in 7.1.2, but only after consultation with the official advisory board or committee, if any, and upon 30 days prior written notice.
Additional fees include Loyalty Program Fees, which are charged for participation in the Wyndham Rewards program. These fees range from 4.25% to 5.5% of the amounts on which members earn points at the Facility. The Loyalty Program Charge may vary based on the number of Wyndham Rewards valid enrollments obtained by the Facility during a defined measurement period, or other metric Baymont Inn Suites determines. If a franchisee does not achieve a certain number of Wyndham Rewards valid enrollments, they may have to pay a Missed Valid Enrollment Fee of up to $400 per month. Additionally, if a franchisee does not process a member's points in a timely manner, Baymont Inn Suites will charge a Loyalty Member Services Administration Fee.
Understanding the distinction between System Assessment Fees and Additional Fees is crucial for prospective Baymont Inn Suites franchisees. While System Assessment Fees cover marketing and reservation services, Additional Fees encompass loyalty program costs and potential penalties for not meeting enrollment targets or properly handling member points. Franchisees should pay close attention to the Front Desk Guide, as it contains detailed information on how Loyalty Program Charges are calculated and how to avoid incurring Missed Valid Enrollment Fees or Loyalty Member Services Administration Fees. This level of detail allows franchisees to manage costs effectively and optimize their participation in the Wyndham Rewards program.