What must a Baymont Inn Suites franchisee do when a Termination occurs?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
amages collected that are attributable to System Assessment Fees will be credited to the Marketing Fund. Liquidated Damages are paid in place of our claims for lost future Recurring Fees under this Agreement. Our right to receive other amounts due under this Agreement is not affected.
- 12.2 Condemnation Payments. In the event a Condemnation is to occur, you will pay us the fees set forth in Section 7 for a period of one year after we receive the initial notice of condemnation described in Section 11.3.2, or until the Condemnation occurs, whichever is longer (the "Notice Period"). You will pay us Liquidated Damages equal to the average daily Royalties and System Assessment Fees for the one-year period preceding the date of your condemnation notice to us multiplied by 365 less the number of days in the Notice Period. 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.
- 13. Your Duties At and After Termination. When a Termination occurs for any reason whatsoever:
- 13.1 System Usage Ceases. You must comply with the following "de-identification" obligatio
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, when a termination occurs for any reason, a franchisee must cease using the Baymont Inn Suites system to operate and identify the facility. This includes immediately removing all signage and items bearing any of Baymont Inn Suites's marks, following detailed steps in the System Standards Manual or other brand directives to change the facility's identification, and promptly painting over or removing the facility's distinctive trade dress, color schemes, and architectural features. The franchisee must also avoid using confusingly similar marks, names, or color schemes.
Furthermore, the franchisee must stop all internet marketing that uses any of Baymont Inn Suites's marks to identify the facility. Failure to comply with these de-identification requirements can result in a penalty of $2,000 per day until the de-identification is completed to Baymont Inn Suites's satisfaction. The franchisee is also required to cancel any assumed name or equivalent registration that contains the name "Baymont" or any variation thereof, providing evidence of compliance within 30 days after termination or expiration of the agreement.
These post-termination obligations are crucial for Baymont Inn Suites to protect its brand and prevent consumer confusion. For a prospective franchisee, understanding these requirements is essential, as the costs associated with de-identification and potential penalties for non-compliance can be significant. Franchisees should carefully review the System Standards Manual and any brand directives to fully understand their responsibilities upon termination.