factual

What fees must a transferee pay to Baymont Inn Suites when transferring a franchise?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 7.4 If a Transfer occurs, your transferee or you will pay us our then current Application Fee and a "Relicense Fee" equal to the Initial Fee we would then charge a new franchisee for the Facility.

    1. Application and Initial Fees. You must pay us a non-refundable Application Fee of $2,500, which shall be applied to your Initial Fee or Relicense Fee.

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.

Source: Item 23 — RECEIPTS (FDD pages 97–443)

What This Means (2025 FDD)

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a transfer of a franchise is to occur, the transferee must pay certain fees. The transferee must pay Baymont Inn Suites the then-current Application Fee and a Relicense Fee equal to the Initial Fee that Baymont Inn Suites would charge a new franchisee for the facility. The Application Fee is initially $2,500, which is applied to either the Initial Fee or the Relicense Fee.

In addition to the fees, the transferee must complete and submit an application to Baymont Inn Suites and qualify to be a franchisee in Baymont Inn Suites's sole discretion, given the circumstances of the proposed transfer. The transferee must also provide the same supporting documents as a new franchise applicant and sign the form of Franchise Agreement that Baymont Inn Suites then offers in conversion transactions.

The transferee must also agree to renovate the Facility as if it were an existing facility converting to the System, as Baymont Inn Suites reasonably determines. Baymont Inn Suites will provide a required Property Improvement Plan (PIP) after they receive the transferee's application. Baymont Inn Suites may also require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.