From what date does the Royalty fee accrue for a Baymont Inn Suites franchise?

According to the 2025 Baymont Inn Suites Franchise Disclosure Document, the royalty fee, which is 5% of Gross Room Revenues, accrues from the earlier of two dates: the Opening Date of the Baymont Inn Suites location, or the date the franchisee identifies the facility as a Chain Facility or operates it under a Mark. This accrual continues until the end of the franchise term.

In practical terms, this means a prospective Baymont Inn Suites franchisee will start paying the 5% royalty fee as soon as their hotel either opens for business or begins operating under the Baymont Inn Suites brand, whichever comes first. This ensures that Baymont Inn Suites receives its royalty payments from the moment the franchisee starts generating revenue under its brand.

It is important for a potential Baymont Inn Suites franchisee to understand that the royalty fee accrues regardless of the hotel's profitability. Even if the location is not yet fully operational but is identified as a Baymont Inn Suites, the royalty obligation begins. This highlights the importance of careful planning and execution in the pre-opening phase to minimize the time between branding and actual revenue generation.