What fees must a Baymont Inn Suites franchisee pay in the event of a Condemnation?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, in the event of a condemnation, a franchisee is required to pay specific fees. The franchisee must continue to pay the fees outlined in Section 7 of the agreement for one year after Baymont Inn Suites receives the initial notice of condemnation, or until the condemnation occurs, whichever period is longer. This period is referred to as the "Notice Period."
In addition to the ongoing fees, the franchisee will also pay liquidated damages. These damages are calculated by taking the average daily royalties and system assessment fees from the one-year period before the condemnation notice, multiplying that by 365, and then subtracting the number of days in the Notice Period. This payment is due within 30 days after the condemnation is completed, which is defined as when the facility closes or is handed over to the condemning authority.
However, the franchisee will not be required to pay liquidated damages if the condemnation is completed after the Notice Period expires. It is important to note that the franchisee must continue to pay all other fees as set forth in the agreement until the condemnation is completed. Franchisees should be aware of these financial obligations in the event of a condemnation, as they could represent a significant expense in addition to the disruption caused by the condemnation itself.