What fees must be paid if a Transfer is to occur for a Baymont Inn Suites franchise?
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.
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 or the franchisee must pay certain fees. The transferee must first complete and submit an application to Baymont Inn Suites and qualify as a franchisee. They must also provide the same supporting documents as a new franchise applicant.
Specifically, the transferee must pay the Application Fee and Relicense Fee that are in effect at the time of the transfer. The application fee is non-refundable, and $2,500 of it shall be applied to the Initial Fee or Relicense Fee. The remainder of the Relicense Fee is paid when the Franchise Agreement is signed. The transferee must also sign the current Franchise Agreement that Baymont Inn Suites offers for conversion transactions.
Additionally, the transferee must agree to renovate the facility as if it were an existing facility converting to the Baymont Inn Suites system, as reasonably determined by the franchisor. Baymont Inn Suites will provide a required Property Improvement Plan (PIP) after receiving the transferee's application. The franchisor may also require structural changes to the facility if it no longer meets the System Standards for entering conversion facilities. Finally, all amounts owed to Baymont Inn Suites and its affiliates by the franchisee, their owners, affiliates, the transferee, its owners, and affiliates must be paid.