Who handles disputes with third parties concerning the use of the Baymont Inn Suites System?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us promptly of (i) any adverse or infringing uses of the Copyrighted Materials, Confidential Information or other System intellectual property, or (ii) any threatened or pending litigation related to the System against (or naming as a party) you or us of which you become aware. We alone handle disputes with third parties concerning use of all or any part of the System. You will cooperate with our efforts to resolve these disputes. We need not initiate suit against imitators or infringers who do not have a material adverse impact on your Facility, or any other suit or proceeding to enforce or protect the System in a matter we do not believe to be material. We also have the right to keep all sums obtained in settlement or as a damages award in any proceeding or litigation without any obligation to share any portion of the settlement sums or damages award with you. You will cooperate with our efforts to resolve these disputes.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 78–79)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Baymont Inn Suites alone handles disputes with third parties concerning the use of all or any part of the System. This means that if there is a disagreement or legal issue with another company or individual regarding the Baymont Inn Suites system, the franchisor, Baymont Inn Suites, will take the lead in managing and resolving the dispute.
For a prospective franchisee, this is a significant benefit. It means that if a third party claims that the franchisee is infringing on their intellectual property or otherwise misusing the Baymont Inn Suites system, the franchisee will not have to bear the sole burden of defending themselves. Instead, Baymont Inn Suites will take responsibility for handling the dispute, which can save the franchisee considerable time, money, and stress.
However, the franchisee is still expected to cooperate with Baymont Inn Suites's efforts to resolve these disputes. This cooperation may involve providing information, documentation, or other assistance as needed. Additionally, Baymont Inn Suites does not have to initiate a suit against imitators if they do not have a material adverse impact on your facility. Baymont Inn Suites also retains the right to keep all sums obtained in settlements without any obligation to share with the franchisee.
This arrangement is fairly typical in franchising, as franchisors generally want to maintain control over their brand and system. By handling disputes themselves, franchisors can ensure that the system is protected and that consistent standards are maintained across all franchise locations.