factual

Where can I find the financial statements required to be filed for Baymont Inn Suites?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

3.6 Financial Books & Records; Audits.

  • 3.6.1 The Facility's transactions must be timely and accurately recorded in accounting books and records prepared on an accrual basis compliant with generally accepted accounting principles of the United States ("GAAP") and consistent with the most recent edition of the Uniform System of Accounts for the Lodging Industry published by the American Hotel & Lodging Association, as modified by this Agreement and System Standards. You acknowledge that your accurate and timely accounting for and reporting of Gross Room Revenues is a material obligation you accept under this Agreement.
  • 3.6.2 Upon our request, you will send to us copies of financial statements, tax returns, and other records relating to the Facility for the applicable accounting period that we require under this Agreement and System Standards. We may notify you of a date on which we propose to audit the Facility's books and records at the Facility but such notice is not required. You will be deemed to have confirmed our proposed date unless you follow the instructions with the audit notice for

changing the date. You need to inform us where the books and records will be produced. You need to produce for our auditors at the confirmed time and place for the audit the books, records, tax returns and financial statements for the Facility. We may require access to the property including guest rooms. We also may perform an audit of the Facility's books and records remotely or electronically without advance notice or your knowledge. Your staff must cooperate with and assist our auditors to perform any audit we conduct.

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

What This Means (2025 FDD)

According to the 2025 Baymont Inn Suites Franchise Disclosure Document, Item 3.6.2 addresses financial books and records and audits. It states that upon request, Baymont Inn Suites requires franchisees to send copies of financial statements, tax returns, and other records relating to the facility for the applicable accounting period. This indicates that franchisees are obligated to maintain and provide these documents to the franchisor when requested.

Furthermore, Baymont Inn Suites retains the right to audit a facility's books and records, either on-site or remotely, with or without advance notice. Franchisees are expected to cooperate with auditors and provide access to the necessary financial documents and the property, including guest rooms. This audit process ensures compliance with the agreement and system standards.

While this section outlines the franchisee's responsibilities for providing financial statements and the franchisor's audit rights, it does not specify where the franchisor's own financial statements can be found within the FDD. To locate Baymont Inn Suites's financial statements, a prospective franchisee should refer to Item 21, which typically contains the franchisor's audited financial statements. If the information is not present, it is advisable to directly ask the franchisor for these statements to fully assess the financial health of the franchise system.

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.