What evidence must the assignee deliver with the assignment agreement for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
eement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties, it is agreed as follows:
-
- Assignor assigns, transfers, bargains, sells, and delegates to Assignee all of its rights, title, and interest in and to the Primary Agreements and its obligations existing and arising in the future under the Primary Agreements.
-
- Assignee accepts and assumes the rights, benefits and obligations of Assignor under the Primary Agreements, effective as of the date of this Agreement, including all existing and future obligations to pay and perform under the Primary Agreements. Assignor shall remain secondarily liable for payment of and performance under the Primary Agreements. The owners of Assignee have executed the Guaranty attached to this Agreement as Appendix A.
-
- To induce Company to consent to this Agreement and the assignment of the Primary Agreements, as of the effective date of this Agreement, Assignee adopts and makes to Company the representations and warranties of Assignor, as Franchisee, set forth in Section 14 of the Franchise Agreement. As of the effective date of this Agreement, Assignee is the owner of fee simple title to the Facility or is otherwise entitled to possession of the Facility for the remainder of the Term of the Franchise Agreement. Assignee's owners are shown on Exhibit B attached to this Agreement, which amends Schedule B of the Franchise Agreement.
-
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, an assignee, when assuming the rights and obligations of a Baymont Inn Suites franchise, must deliver specific evidence along with the assignment agreement. This includes providing evidence of insurance that meets the System Standards outlined in the Franchise Agreement. This requirement ensures that the assignee has adequate insurance coverage in place, protecting both the franchisee and Baymont Inn Suites from potential liabilities.
Additionally, to induce Baymont Franchise Systems, Inc. to consent to the assignment, the assignee must adopt and make to the company the same representations and warranties that the assignor (original franchisee) made in Section 14 of the Franchise Agreement. The assignee must also demonstrate that they hold fee simple title to the Facility or are otherwise entitled to possess the Facility for the remainder of the Term of the Franchise Agreement. Furthermore, the owners of the assignee must be listed on Exhibit B attached to the agreement, which serves as an amendment to Schedule B of the Franchise Agreement.
These stipulations ensure that the assignee meets Baymont Inn Suites's standards and is fully aware of the obligations and responsibilities they are undertaking. By requiring the assignee to provide evidence of insurance, adopt the original franchisee's representations, and demonstrate ownership or possessory rights to the facility, Baymont Inn Suites aims to maintain consistency and protect its brand integrity during the transfer of franchise rights.