Where can I find a further description of 'Gross Room Revenue' for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Room Revenues means gross revenues attributable to or payable for rentals of guest (sleeping) rooms at the Facility, including all credit transactions, whether or not collected, guaranteed no-show revenue, net of chargebacks from credit card issuers, any proceeds from any business interruption or similar insurance applicable to the loss of revenues due to the nonavailability of guest rooms and any miscellaneous fees charged to all guests regardless of the accounting treatment of such fees. Excluded from Gross Room Revenues are separate charges to guests for Food and Beverage (including room service); actual telephone charges for calls made from a guest room; key forfeitures and entertainment (including Internet fees and commissions); vending machine receipts; and federal, state, and local sales, occupancy, and use taxes. Gross Room Revenue is further described in System Standards.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the definition of 'Gross Room Revenues' can be found within Item 22, specifically in the section that defines various terms related to the franchise agreement. The document states that a more detailed description of 'Gross Room Revenue' is available in the System Standards.
For a prospective Baymont Inn Suites franchisee, understanding 'Gross Room Revenues' is crucial because it directly impacts fees payable to the franchisor. The System Assessment Fees, which include the Marketing Contribution (2.0% of Gross Room Revenues) and the Basic Reservation Fee (1.5% of Gross Room Revenues), are calculated based on this revenue. Therefore, accurately determining what constitutes 'Gross Room Revenues' is essential for financial planning and compliance.
The definition provided in Item 22 specifies that 'Gross Room Revenues' includes revenues from guest room rentals, credit transactions, guaranteed no-show revenue, proceeds from business interruption insurance related to loss of room revenue, and miscellaneous fees charged to all guests. However, it explicitly excludes charges for food and beverage, telephone charges, key forfeitures, entertainment, vending machine receipts, and certain taxes. By consulting the System Standards, a franchisee can gain a more comprehensive understanding of how to calculate and report 'Gross Room Revenues,' ensuring accurate fee payments and avoiding potential disputes with Baymont Inn Suites.