What is the administrative Relicense Fee for an Administrative Assignment of a Baymont Inn Suites Franchise Agreement to an affiliated entity?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e for each franchise renewal was $26,000.
If you assign the Franchise Agreement, with our consent, to an entity affiliated with the initial franchisee using the Assignment and Assumption Agreement included in Exhibit C-1 (an "Administrative Assignment"), we will charge you a flat non-refundable administrative Relicense Fee of $5,000, which includes your Application Fee. If the Franchise Agreement is being assigned to a financial institution or a court-appointed receiver, with our consent, the non-refundable administrative Relicense Fee is $7,500, and includes the Application Fee.
We may negotiate the amount, payment terms and payment of any of the above
Source: Item 5 — INITIAL FEES (FDD pages 27–30)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a franchisee seeks to assign their Franchise Agreement to an affiliated entity through an Administrative Assignment, Baymont Inn Suites charges a flat, non-refundable administrative Relicense Fee of $5,000. This fee encompasses the Application Fee. An Administrative Assignment utilizes the Assignment and Assumption Agreement detailed in Exhibit C-1 of the FDD.
This fee is notably different from the standard Relicense Fees for franchise transfers, which, in 2024, ranged from $15,000 to $26,000. The lower fee for Administrative Assignments suggests that Baymont Inn Suites offers more favorable terms for transfers within the same ownership group, potentially streamlining internal restructuring or ownership changes.
It's important to note that this $5,000 fee applies specifically to assignments to affiliated entities. Assignments to financial institutions or court-appointed receivers incur a different administrative Relicense Fee of $7,500. Baymont Inn Suites retains the right to negotiate the amount and payment terms of this fee based on specific business circumstances, indicating some flexibility in its application.