How is the amount for construction financing fees calculated for a Baymont Inn Suites franchise?

According to the 2025 Baymont Inn Suites FDD, the construction financing fees are calculated as a percentage of the facility construction costs. Specifically, the amount is calculated as 5% of the total facility construction costs. This fee covers expenses related to securing financing for the construction of the Baymont Inn Suites facility.

For a prospective franchisee, this means that the more expensive the construction of the facility, the higher the construction financing fees will be. It is important for franchisees to factor this percentage into their overall budget when planning the construction of their Baymont Inn Suites location. Understanding this calculation helps in accurately estimating the initial investment required.

It is also important to note that the FDD provides an estimate of initial investment required for a new construction facility, but these figures exclude the cost of land. The actual expenditures for a Baymont Inn Suites facility will depend on variables such as the region of the country, labor costs, economic conditions, and the timetable for completing the project, and may be outside of the ranges presented.