factual

Is a Baymont Inn Suites franchisee required to join a purchasing or distribution cooperative?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

We do not have a purchasing or distribution cooperative that you must join.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 53–56)

What This Means (2025 FDD)

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees are not required to join a purchasing or distribution cooperative. However, Baymont Inn Suites does utilize Approved Suppliers, and franchisees are required to purchase certain items from these suppliers. These items include those bearing the Baymont Inn Suites marks (such as signage and supplies), elements that define the brand ambience (like music or décor), items related to health and safety, the market feasibility study firm (if one is used), and certain technology systems like guest wireless internet, credit card processing, and the PMS.

Baymont Inn Suites, and/or its affiliate WSSI, negotiates purchasing terms with suppliers, including price, volume discounts, and commissions. Approved Suppliers generally pay WSSI a commission based on sales volume to franchisees, typically ranging from 0% to 5% of net or gross sales, but sometimes reaching as high as 10%. While franchisees are not obligated to buy most items from Approved Suppliers as long as they meet system standards, failure to maintain the required insurance coverage is a material default under the Franchise Agreement and can lead to termination.

In 2024, net revenues from franchisees' purchases of required products or services were approximately $7.9 million, or about 0.56% of WHR's total net revenues of $1.408 billion. Net revenues from optional purchases were approximately $9.0 million, or about 0.64% of WHR's total net revenues of $1.408 billion. While officers of Baymont Inn Suites do not have material interests in suppliers, they may have non-material investments in publicly held supplier companies.

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.