What fees must a Baymont Inn Suites franchisee continue to pay until Condemnation is completed?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, a franchisee must continue to pay all fees outlined in the Franchise Agreement, including those detailed in Section 7, and all other agreements with Baymont Inn Suites or its affiliates pertaining to the facility until the Condemnation is completed. Condemnation is considered complete when the facility closes or is delivered to the condemning authority.
This means that even when a Baymont Inn Suites property is subject to condemnation, the franchisee's financial obligations to the franchisor do not immediately cease. The franchisee must continue to pay royalties, marketing fees, and any other applicable fees as specified in their agreements. This obligation remains in effect until the legal process of condemnation is finalized.
This provision is important for prospective Baymont Inn Suites franchisees to understand, as it highlights the ongoing financial responsibilities even during unforeseen circumstances like condemnation. Franchisees should factor this potential continued expense into their financial planning and be prepared to meet these obligations until the condemnation process is formally concluded. It is also important to note that the franchisee will have to pay 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.