factual

Does the Baymont Inn Suites agreement create any third-party beneficiaries?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You further agree that our third-party vendor, IDeaS, shall be a third-party beneficiary of this Supplement and you shall be responsible to, and shall indemnify and hold harmless, both us and IDeaS for any liability or damage incurred or arising from or related to use of the RevIQ Products and/or Services by you or your Permitted Users in a manner that violates the RevIQ System Use Restrictions.

Source: Item 22 — CONTRACTS (FDD pages 96–97)

What This Means (2025 FDD)

According to the 2025 Baymont Inn Suites Franchise Disclosure Document, under the section detailing RevIQ System Use Restrictions, the agreement does establish a third-party beneficiary. Specifically, Baymont Inn Suites's third-party vendor, IDeaS, is designated as a third-party beneficiary to the agreement. This means that IDeaS has certain rights and protections under the franchise agreement related to the RevIQ Products and/or Services.

As a Baymont Inn Suites franchisee, you are responsible for indemnifying and holding harmless both Baymont Inn Suites and IDeaS for any liabilities or damages arising from your or your permitted users' use of the RevIQ Products and/or Services, especially if such use violates the RevIQ System Use Restrictions. This obligation extends to covering any losses or expenses incurred by IDeaS due to your non-compliance with these restrictions.

This arrangement is not uncommon in franchising, particularly when specialized software or systems are involved. Franchisors often rely on third-party vendors to provide essential services, and they may include provisions in the franchise agreement to protect the interests of these vendors. It is important for a prospective franchisee to understand the implications of these third-party beneficiary clauses and to ensure that they and their employees comply with all applicable terms and restrictions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.