In the event of a Transfer of a Baymont Inn Suites franchise, what fees are payable to the franchisor?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Transfer is to occur, the transferee (or you, if an Equity Transfer is involved) must first complete and submit our application; qualify to be a franchisee in our sole discretion, given the circumstances of the proposed Transfer; provide the same supporting documents as a new franchise applicant; pay the Application Fee and Relicense Fee then in effect; sign the form of Franchise Agreement we then offer in conversion transactions; and agree to renovate the Facility as if it were an existing facility converting to the System, as we reasonably determine.
We will provide a required PIP after we receive the transferee's Application.
We may require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities, or, in the alternative, condition our approval of the Transfer on limiting the transferee's term to the balance of your Term, or adding a right to terminate without cause exercisable by either party after a period of time has elapsed.
Our consent to the transaction will not be effective until these conditions are satisfied.
If we do not approve the Transfer, we may, in our sole discretion, allow you to terminate the Franchise when you sell the Facility and pay us Liquidated Damages under Section 12.1.
Such payment would be due and payable when you transfer possession of the Facility.
We also must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you, your owners, your affiliates, the transferee, its owners and affiliates, under this Agreement or otherwise.
Our consent to a Transfer is not a waiver of (i) any claims we may have against you; or (ii) our right to demand strict compliance from the Transferee with the terms of its agreement.
- 9.4 Permitted Transferee Transactions. Provided that you comply with this Section 9.4 you (i) may transfer an Equity Interest to a Permitted Transferee or (ii) effect an Equity Transfer to a Permitted Transferee without obtaining our consent, renovating the Facility or paying a Relicense Fee or Application Fee.
No Transfer will be deemed to occur.
You must not be in default and you must comply with the application and notice procedures specified in Sections 9.3 and 9.6.
Each Permitted Transferee first must agree in writing to be bound by this Agreement, or at our option, execute the Franchise Agreement form then offered prospective franchisees.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, if a transfer of a franchise is to occur, the transferee must pay the Application Fee and Relicense Fee then in effect. The transferee must also complete and submit an application, qualify to be a franchisee, and provide the same supporting documents as a new franchise applicant. The transferee must sign the form of Franchise Agreement that Baymont Inn Suites then offers in conversion transactions and agree to renovate the Facility as if it were an existing facility converting to the System.
Baymont Inn Suites may require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities. Alternatively, Baymont Inn Suites may condition its approval of the Transfer on limiting the transferee's term to the balance of the current term or adding a right to terminate without cause exercisable by either party after a period of time has elapsed. The consent to the transaction will not be effective until these conditions are satisfied.
If Baymont Inn Suites does not approve the Transfer, it may allow the franchisee to terminate the Franchise when they sell the Facility and pay Liquidated Damages under Section 12.1. In addition to the fees mentioned above, Baymont Inn Suites must receive general releases from the franchisee and each of their owners, and payment of all amounts then owed to Baymont Inn Suites and its affiliates by the franchisee, their owners, their affiliates, the transferee, its owners, and affiliates, under the Franchise Agreement or otherwise.
However, if the franchisee complies with Section 9.4, they may transfer an Equity Interest to a Permitted Transferee or effect an Equity Transfer to a Permitted Transferee without obtaining Baymont Inn Suites' consent, renovating the Facility, or paying a Relicense Fee or Application Fee. To do so, the franchisee must not be in default and must comply with the application and notice procedures specified in Sections 9.3 and 9.6. Each Permitted Transferee must agree in writing to be bound by the Franchise Agreement, or at Baymont Inn Suites' option, execute the Franchise Agreement form then offered to prospective franchisees.