When are Agency Commissions due to Baymont Inn Suites?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1 |
|---|---|---|---|
| modification to reflect changes in third party fees and our costs (including overhead) of providing the service and new service offerings. | |||
| Agency Commissions | Up to 20% of GRR. | When we or an Agency invoice you. | Reimburses us for Agency Commissions we pay on your behalf plus related administrative costs. Includes commissions for travel agents, online travel and referral websites, travel consortia, travel management companies and global sales agents. 20% limit is generated on qualifying consumed reservations and subject to modification to reflect changes in the commissions we pay on your behalf. |
| Agency Commission Service Charge | 1.5% of commissionable revenue. | When we or an Agency invoice you. | The standard Service Charge is 1.5% on certain group sales and commission activities booked and consumed by agencies. Subject to modification to reflect changes in our costs. |
Source: Item 6 — OTHER FEES (FDD pages 30–45)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Agency Commissions are due when Baymont Inn Suites or an agency invoices the franchisee. These commissions can be up to 20% of Gross Room Revenues (GRR). The Agency Commissions reimburse Baymont Inn Suites for commissions they pay on the franchisee's behalf, along with related administrative costs. This includes commissions for various entities such as travel agents, online travel and referral websites, travel consortia, travel management companies, and global sales agents. The 20% limit is based on qualifying consumed reservations and is subject to change to reflect modifications in the commissions that Baymont Inn Suites pays out.
In addition to the Agency Commissions, there is also an Agency Commission Service Charge, which is 1.5% of commissionable revenue. This service charge is applied to certain group sales and commission activities booked and consumed by agencies and is also due when Baymont Inn Suites or an agency invoices the franchisee. Like the Agency Commissions, this service charge is subject to modification to reflect changes in Baymont Inn Suites's costs.
For a prospective Baymont Inn Suites franchisee, it's important to understand that these commission-related fees can significantly impact revenue, especially if a large portion of bookings comes through agencies or group sales. Franchisees should factor these costs into their financial projections and be aware that the percentages and amounts are subject to change, potentially affecting profitability. It is also important to note that the definition of GRR excludes certain charges such as food and beverage, telephone charges, and vending machine receipts, which means the commission is calculated on a narrower base of revenue.