What 'de-identification' obligations must a Baymont Inn Suites franchisee comply with upon termination?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
amages collected that are attributable to System Assessment Fees will be credited to the Marketing Fund. Liquidated Damages are paid in place of our claims for lost future Recurring Fees under this Agreement. Our right to receive other amounts due under this Agreement is not affected.
- 12.2 Condemnation Payments. In the event a Condemnation is to occur, you will pay us the fees set forth in Section 7 for a period of one year after we receive the initial notice of condemnation described in Section 11.3.2, or until the Condemnation occurs, whichever is longer (the "Notice Period"). You will pay us Liquidated Damages equal to the average daily Royalties and System Assessment Fees for the one-year period preceding the date of your condemnation notice to us multiplied by 365 less the number of days in the Notice Period. This payment will be made within 30 days after Condemnation is completed (when you close the Facility or you deliver it to the condemning authority). You will pay no Liquidated Damages if the Condemnation is completed after the Notice Period expires. For the sake of clarity, you must continue to pay when due the
fees, set forth in this Agreement, including under Section 7, and all other agreements with us or our affiliates pertaining to the Facility until Condemnation is completed.
- 13. Your Duties At and After Termination. When a Termination occurs for any reason whatsoever:
- 13.1 System Usage Ceases. You must comply with the following "de-identification" obligations. You will immediately stop using the System to operate and identify the Facility. You will remove all signage and other items bearing any Marks and follow the other steps detailed in the System Standards Manual or other brand directives for changing the identification of the Facility. You will promptly paint over or remove the Facility's distinctive System trade dress, color schemes and architectural features. You shall not identify the Facility with a confusingly similar mark or name, or use the same colors as the System trade dress for signage, printed materials and painted surfaces. You will cease all Internet marketing using any Marks to identify the Facility.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee has several 'de-identification' obligations to fulfill. The franchisee must immediately cease using the Baymont Inn Suites System to operate and identify the facility. This includes removing all signage and other items bearing any of the brand's marks, following detailed steps in the System Standards Manual or other brand directives to change the facility's identification. The franchisee is also required to promptly paint over or remove the facility's distinctive trade dress, color schemes, and architectural features. They cannot identify the facility with a confusingly similar mark or name, or use the same colors as the System's trade dress.
Furthermore, the franchisee must cease all Internet marketing using any Baymont Inn Suites marks to identify the facility. The franchisee must also cancel any assumed name or equivalent registration that contains the name "Baymont" or any variation thereof or any other mark, providing evidence of compliance within thirty (30) days after termination or expiration of the agreement. Failure to strictly comply with these de-identification requirements may result in a royalty payment of $2,000 per day until de-identification is completed to Baymont Inn Suites's satisfaction.
Baymont Inn Suites also has the right to enter the facility and remove software for accessing the Reservation System, copies of the System Standards Manual, and other personal property. If the franchisee fails to complete de-identification, Baymont Inn Suites may paint over or remove mark-bearing signage, with the franchisee responsible for reimbursing the costs, net of a $10.00 purchase price for the signage. Additionally, the franchisee will transfer to Baymont Inn Suites any domain names they own that include any material portion of the marks.