After consulting with the FAC, how binding are modifications to fees for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The System Assessment Fees consist of the "Marketing Contribution" and the "Basic Reservation Fee." The Marketing Contribution is 2.0% of Gross Room Revenues; the Basic Reservation Fee is 1.5% of Gross Room Revenues. We reserve the right, in our sole discretion, to increase or modify the System Assessment Fees for all Chain Facilities from time to time to cover costs (including reasonable direct or indirect overhead costs) related to the services and programs referenced in 7.1.2 but only after consultation with the official advisory board or committee, if any, and upon 30 days prior written notice.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–85)
What This Means (2025 FDD)
According to Baymont Inn Suites' 2025 Franchise Disclosure Document, the franchisor retains the right to increase or modify System Assessment Fees. These fees consist of the Marketing Contribution, set at 2.0% of Gross Room Revenues, and the Basic Reservation Fee, which is 1.5% of Gross Room Revenues. Baymont Inn Suites can adjust these fees to cover costs related to services and programs outlined in section 7.1.2 of the FDD.
However, this right is not absolute. Baymont Inn Suites must first consult with the official advisory board or committee, if one exists. This consultation suggests that while the franchisor has the final say, franchisee input is considered. Additionally, Baymont Inn Suites is required to provide franchisees with 30 days' prior written notice before implementing any changes to the System Assessment Fees.
For a prospective franchisee, this means that while you will be subject to potential fee increases during the term of your franchise agreement, Baymont Inn Suites is expected to engage in a consultation process and provide advance notice. It is important to understand the scope and nature of these potential fee adjustments and to factor them into your financial projections. A prospective franchisee should inquire about the history of fee changes and the structure of the advisory board or committee to better assess the potential impact on their business.