factual

Can a Baymont Inn Suites franchisee divert business to a competitor?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You shall not affiliate or identify the Facility with another franchise system, reservation system, brand, cooperative or registered mark during the Term.

While this Agreement is in effect, neither you, any of your affiliates, nor any of your officers, directors, general partners or owners of 25% or more of your Equity Interests, may own, operate, lease, manage, or franchise any timeshare resort, vacation club, residence club, fractional ownership residence, condominium/apartment leasing or rental business, or the like, for any facility or business that shares, directly or indirectly, common areas, amenities, recreation facilities, services, supplies, or support activities with the Facility.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 79–80)

What This Means (2025 FDD)

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees are prohibited from affiliating their Baymont Inn & Suites facility with any other franchise system, reservation system, brand, cooperative, or registered mark during the term of the franchise agreement. This restriction ensures that franchisees focus solely on promoting and operating their Baymont Inn & Suites location under the established brand standards.

This provision prevents a franchisee from simultaneously operating or promoting a competing lodging business under a different brand name from the Baymont Inn & Suites location. The franchisee must maintain the integrity of the Baymont Inn & Suites brand and system.

Additionally, the franchise agreement specifies that neither the franchisee, their affiliates, nor their officers, directors, general partners, or owners with 25% or more equity interest can own, operate, lease, manage, or franchise any timeshare resort, vacation club, residence club, fractional ownership residence, or condominium/apartment leasing or rental business that shares common areas, amenities, recreation facilities, services, supplies, or support activities with the Baymont Inn & Suites facility. This clause further restricts the franchisee's ability to engage in related or potentially competing ventures that could draw resources or customers away from the Baymont Inn & Suites business.

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.