What constitutes the commencement of construction for a Baymont Inn Suites facility?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must commence construction of the Facility no later than 18 months after the Effective Date, and complete construction, and properly deliver the Certification as described in subsection 1.3 of this Schedule, and open the Facility under the Chain with our authorization no later than 30 months from the Effective Date. Construction commences, for purposes of this Schedule, when all of the following occur: (x) we approve a site plan, completed working drawings and detail specifications for the Facility; (y) governmental permits are issued to commence foundation construction; and (z) you commence pouring concrete for building footings. Time is of the essence for the completion of the Improvement Obligation. We may, however, in our sole discretion, grant extensions of time to perform any phase of the Improvement Obligation. The grant of an extension will not waive any other default existing at the time the extension is granted. All construction must comply with System Standards, any Approved Plans, and this Agreement. Your general contractor or you must carry the insurance required under this Agreement during construction.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, construction commencement for a new facility is specifically defined within Schedule D Addendum for New Construction Facilities. Construction begins when three key conditions are met. First, Baymont Inn Suites must give approval to the site plan, completed working drawings, and detailed specifications for the facility. Second, the franchisee must obtain the necessary governmental permits that allow for the commencement of foundation construction. Finally, the franchisee must begin pouring concrete for the building's footings.
Meeting these conditions is crucial because the franchisee must commence construction of the Facility no later than 18 months after the Effective Date, and complete construction, and properly deliver the Certification as described in subsection 1.3 of this Schedule, and open the Facility under the Chain with Baymont Inn Suites's authorization no later than 30 months from the Effective Date. These deadlines are important for franchisees to keep in mind, as time is of the essence for the completion of the Improvement Obligation.
Baymont Inn Suites may, at its discretion, grant extensions of time to perform any phase of the Improvement Obligation. However, the grant of an extension will not waive any other default existing at the time the extension is granted. All construction must comply with System Standards, any Approved Plans, and this Agreement. The franchisee's general contractor or the franchisee must carry the insurance required under this Agreement during construction.