What is the connection between the standards and specifications mentioned in Item 8 and the franchisee's obligations regarding insurance as detailed in Item 9 for a Baymont Inn Suites?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
dards and add new ones through updates to the Manual.
You will obtain and maintain during the term of the agreement the insurance coverage required by Section 3.8 of the Baymont Franchise Agreement and under the System Standards Manual, which is outlined below. All Baymont hotels must have active insurance coverage effective at the start of construction or renovation and in continuous force while operating under the Baymont System or as a Baymont. Each insurance policy must include as a named insured the party or parties (and their respective successors or assigns) that are identified as the "Franchisee" or the "Franchisees" in the Franchise Agreement. Coverage must be on an occurrence basis. Each liability policy must name as an additional insured all of the following: Baymont Franchise Systems, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities; and all of their current and former subsidiaries, affiliates, successors, and assigns, as their respective interests may appear. Each liability policy must provide that the insurance coverage for each additional insured is primary and is not contributory with or excess of any insurance coverage that may be available to an additional insured.
Specific coverages include Commercial General Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence covering premises, products, independent contractors, bodily injury, personal injury, contractual and advertising liability, property damage, and insured contract liability; Liquor Liability with minimum coverage of $1,000,000 per occurrence as well as inclusion in excess liability coverage if beer, liquor, or alcoholic beverages are sold or served on site, including but not limited to, by restaurants or lounges, minibars, or vending machines; Comprehensive Automobile Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence on all vehicles; Worker's Compensation in compliance with state laws; Employers Liability Insurance with minimum coverage of $100,000; Business Interruption (Loss of Earnings) Insurance with a minimum of $100,000 of coverage, actual loss or twelve (12) months sustained; and Umbrella/Excess Liability Insurance at least as broad as the required underlying coverage, with minimum limits of liability of $3,000,000 per occurrence. In addition, each Franchisee with an on-site restaurant, including but not limited to an owned or leased lounge or recreational facility space, must require that the operator satisfy the minimum insurance requirements listed in the System Standards Manual.
The failure to carry insurance coverage meeting the requirements described in the System Standards is a material default under the Franchise Agreement and may be grounds for termination of the Franchise Agreement. In addition, should you for any reason fail to procure or maintain the insurance required, we have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge the cost thereof to you, which charge, together with a reasonable fee for our expenses in so a
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the standards and specifications outlined in the System Standards Manual directly impact a franchisee's insurance obligations. Item 8 states that franchisees must obtain and maintain insurance coverage as required by Section 3.8 of the Baymont Franchise Agreement and the System Standards Manual. This means the specific types and amounts of insurance a franchisee needs are not just generally mandated, but are tied to the detailed operational and design standards that Baymont Inn Suites sets for its locations.
The System Standards Manual details the specific insurance coverages required. These include Commercial General Liability Insurance with a minimum of $1,000,000 coverage per occurrence, covering various liabilities. If the Baymont Inn Suites location sells alcohol, Liquor Liability insurance with $1,000,000 coverage is required. Comprehensive Automobile Liability Insurance, Worker's Compensation, Employer's Liability Insurance, Business Interruption Insurance, and Umbrella/Excess Liability Insurance are also mandated with specific coverage amounts. For locations with on-site restaurants, the franchisee must ensure the restaurant operator meets the minimum insurance requirements listed in the System Standards Manual.
Failure to meet these insurance requirements, as defined by the System Standards, constitutes a material default under the Franchise Agreement, potentially leading to termination. Baymont Inn Suites retains the right, but not the obligation, to procure the necessary insurance if the franchisee fails to do so, charging the franchisee for the cost plus a reasonable fee. This underscores the importance of understanding and adhering to the System Standards Manual, as it directly affects the franchisee's financial and operational responsibilities regarding insurance.