factual

Is a Baymont Inn Suites franchisee required to personally participate in the direct operation of the franchise?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You do not have to participate personally in the direct operation of your Facility although we recommend that you do so. If you do not personally manage the Facility, you must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities to manage the Facility. The Facility's general manager must successfully complete our training program. You are solely responsible for all employment decisions for your Facility, including recruitment, hiring, firing, scheduling, remuneration, personnel policies, training, benefits, safety, security, supervision, discipline and termination, regardless of whether you received advice from us on any of these subjects. The management company or individual manager does not have to own an equity interest in the franchisee or the Facility.

We reserve the right to require you to retain a third-party manager or management company approved by us if you do not have significant experience managing a hotel, or are receiving a Development Incentive (see Item 10). If we require you to retain a third-party manager or management company, we reserve the right to approve any management agreement between the owner and any approved management company.

You, or your manager/management company, must not divert any business of customer of the Facility to any competitor, or do any other act which may cause harm to the goodwill associated with the Marks and the Chain.

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 not required to participate personally in the direct operation of their facility. However, Baymont Inn Suites recommends that franchisees do so. If a franchisee chooses not to manage the facility themselves, they must hire a management company or an individual manager. This manager must have significant training and experience in the general management of similar lodging facilities.

The general manager hired by the franchisee must successfully complete Baymont Inn Suites's training program. The franchisee retains sole responsibility for all employment decisions at the facility. This includes recruitment, hiring, firing, scheduling, remuneration, personnel policies, training, benefits, safety, security, supervision, discipline, and termination, regardless of any advice received from Baymont Inn Suites on these matters.

Baymont Inn Suites reserves the right to require a franchisee to retain a third-party manager or management company approved by them if the franchisee lacks significant experience in hotel management or is receiving a Development Incentive. If such a requirement is imposed, Baymont Inn Suites also reserves the right to approve any management agreement between the owner and the approved management company. Regardless of who manages the facility, neither the franchisee nor their manager can divert business to competitors or harm the goodwill associated with the Baymont Inn Suites brand.

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.