Does the Baymont Inn Suites franchise agreement provide benefits to third parties?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.5 Miscellaneous. This Agreement is exclusively for the benefit of the parties. There are no third-party beneficiaries. No agreement between us and anyone else is for your benefit.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, the franchise agreement is primarily for the benefit of the parties involved, which are the franchisor and the franchisee. Specifically, Section 17.5 states that the agreement is exclusively for the benefit of the parties and clarifies that there are no third-party beneficiaries. This means that no other individual or entity is intended to receive any rights or benefits under the agreement. Furthermore, it explicitly states that no agreement between Baymont Inn Suites and anyone else is for the franchisee's benefit.
This clause is a standard legal provision designed to prevent unintended third parties from claiming rights or benefits under the franchise agreement. For a prospective Baymont Inn Suites franchisee, this means they cannot rely on any potential benefits for other parties as a reason to enter into the agreement. The agreement is solely between the franchisee and Baymont Inn Suites, and its terms are only enforceable by those two parties.
However, the FDD also mentions that Wyndham Hotels & Resorts, Inc. provides a Guaranty of Performance, ensuring that Baymont Franchise Systems, Inc. fulfills its obligations under the franchise agreements. While this guaranty benefits franchisees and licensees, it's structured as a separate agreement rather than a direct benefit conferred by the franchise agreement itself. Additionally, the franchisee's liability insurance policies will name as additional insureds Baymont Franchise Systems, Inc; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and their current and former subsidiaries, affiliates, successors and assigns; as their respective interests may appear.
In summary, while certain third parties like Wyndham Hotels & Resorts have roles related to the Baymont Inn Suites franchise system, the core franchise agreement itself is explicitly structured to avoid conferring benefits to third parties, focusing instead on the direct relationship between the franchisor and the franchisee.