Can Baymont Inn Suites assign the service agreement without the franchisee's consent?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1 Transfer of the Facility. This Agreement is personal to you (and your owners if you are an entity). We are relying on your experience, skill and financial resources (and that of your owners and the guarantors, if any) to sign this Agreement with you. You may finance the Facility and grant a lien, security interest or encumbrance on it (but not in this Agreement) without notice to us or our consent. If a Transfer is to occur, the transferee or you must comply with Section 9.3. Your Franchise is subject to Termination when the Transfer occurs. The Franchise is not transferable to your transferee, who has no right or authorization to use the System and the Marks when you transfer ownership or possession of the Facility. The transferee may not operate the Facility under the System, and you are responsible for performing the post-Termination obligations in Section 13. You and your owners may assign, pledge, transfer, delegate, or grant a security interest in all or any of your rights, benefits and obligations under this Agreement, as security or otherwise, only with our prior written consent and after you comply with Sections 9.3 and 9.6. As a condition of our consent, if your interest in this Agreement is proposed as the collateral of a security interest, then we may require that you and your lender execute a comfort letter in the form described in our then-current disclosure document and that you pay our then-current fee for processing such a request. Transactions involving Equity Interests that are not Equity Transfers do not require our consent and are not Transfers.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, Baymont Franchise Systems, Inc. requires the franchisee's consent to assign, pledge, transfer, delegate, or grant a security interest in the agreement.
Specifically, the franchisee and their owners may only assign, pledge, transfer, delegate, or grant a security interest in their rights, benefits, and obligations under the agreement with Baymont Inn Suites with the company's prior written consent. This consent is also contingent upon compliance with specific sections of the agreement related to transfers.
As a condition of consent, if the franchisee's interest in the agreement is proposed as collateral for a security interest, Baymont Inn Suites may require the franchisee and their lender to execute a comfort letter in the form described in the then-current disclosure document and pay the then-current fee for processing such a request. Transactions involving equity interests that are not equity transfers do not require consent and are not considered transfers.