Where in the Baymont Inn Suites Franchise Agreement is the Protected Territory described?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be assigned a "Protected Territory" under Section 2 of the Franchise Agreement in which we will not own, operate or manage another Chain Facility without your consent. We will not permit any additional franchises for a Chain Facility to open in the Protected Territory after you execute your Franchise Agreement with us. Any Chain Facility located within the Protected Territory when your Franchise Agreement becomes effective may have its franchise renewed or reissued, expanded for additional guest rooms or, if its franchise terminates or is not renewed, replaced with a replacement Chain Facility having not more than 120% of the guest rooms of the replaced Chain Facility, located within the same trading area.
We will negotiate the Protected Territory with you before you sign the Franchise Agreement. These negotiations will take into account one or more of the following: the nature of the market your Facility will serve (urban/suburban/rural); population density; demographics; natural travel boundaries (such as rivers or impassable lands); what public and private facilities, if any, will generate lodging demand for your Facility (including airports, highways, sports, recreation and entertainment venues, colleges, military bases, tourist attractions, hospitals, shopping malls and commercial and industrial activities); the "seasonal" versus year round nature of anticipated occupancy of your Facility; the weekend versus weekday anticipated occupancy of your Facility; and other variables. The Protected Territory may be defined as a radius from the door of the Facility or an irregular area bound by one or more highways, streets, governmental jurisdiction boundaries or natural boundaries, or by latitude and longitude and described in words, depicted on a map or both. In any case, your Protected Territory will be described in Section 2 of the Franchise Agreement. There is no minimum Protected Territory that we offer.
Source: Item 12 — TERRITORY (FDD pages 74–76)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the specifics of the Protected Territory are outlined in Section 2 of the Franchise Agreement. The document states that Baymont Inn Suites will negotiate the Protected Territory with the franchisee before the Franchise Agreement is signed. This negotiation considers factors such as the market the facility will serve (urban, suburban, or rural), population density, demographics, natural travel boundaries, and public and private facilities that generate lodging demand. The Protected Territory may be defined by a radius from the facility or an irregular area bound by highways, streets, governmental jurisdiction boundaries, natural boundaries, or by latitude and longitude, and it will be described in words, depicted on a map, or both. There is no minimum Protected Territory offered by Baymont Inn Suites.
This means that the exact size and shape of the Protected Territory will vary depending on the specific location and market conditions of each Baymont Inn Suites franchise. Prospective franchisees should carefully review Section 2 of the Franchise Agreement and discuss the specifics of their Protected Territory with Baymont Inn Suites before signing the agreement to fully understand the extent of their territorial protection.
It is important to note that Baymont Inn Suites does not offer exclusive territories, and franchisees may face competition from other franchisees, outlets owned or managed by Baymont Inn Suites, or other channels of distribution or competitive brands controlled by them. Baymont Inn Suites may also grant Protected Territories for other Chain Facilities that overlap a franchisee's Protected Territory. Additionally, Baymont Inn Suites may operate a Chain Facility in the Protected Territory beginning six months before the expiration of the Franchise Agreement or as of the date that a date for the premature termination of the Franchise Agreement has been confirmed in writing by them. These factors highlight the importance of thoroughly understanding the terms and limitations of the Protected Territory before investing in a Baymont Inn Suites franchise.