When must a Baymont Inn Suites franchisee pay liquidated damages after Condemnation is completed?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This payment will be made within 30 days after Condemnation is completed (when you close the Facility or you deliver it to the condemning authority).
You will pay no Liquidated Damages if the Condemnation is completed after the Notice Period expires.
For the sake of clarity, you must continue to pay when due the
fees, set forth in this Agreement, including under Section 7, and all other agreements with us or our affiliates pertaining to the Facility until Condemnation is completed.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a condemnation occurs, the franchisee is required to pay liquidated damages within 30 days after the condemnation is completed. Condemnation is considered complete when the facility is either closed or delivered to the condemning authority.
The liquidated damages are calculated based on the average daily royalties and system assessment fees for the one-year period preceding the date the franchisee provides notice of the condemnation to Baymont Inn Suites. This daily average is then multiplied by 365, and the number of days in the Notice Period (one year after the initial notice of condemnation) is subtracted from this total.
However, the franchisee will not be required to pay any liquidated damages if the condemnation is completed after the Notice Period expires. Until the condemnation is completed, the franchisee must continue to pay all fees as outlined in the franchise agreement and any other agreements with Baymont Inn Suites or its affiliates pertaining to the facility.