What happens if Baymont Inn Suites does not approve a franchise transfer, and what are the franchisee's options?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not approve the Transfer, we may, in our sole discretion, allow you to terminate the Franchise when you sell the Facility and pay us Liquidated Damages under Section 12.1.
Such payment would be due and payable when you transfer possession of the Facility.
We also must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you, your owners, your affiliates, the transferee, its owners and affiliates, under this Agreement or otherwise.
Our consent to a Transfer is not a waiver of (i) any claims we may have against you; or (ii) our right to demand strict compliance from the Transferee with the terms of its agreement.
- 9.5 Attempted Transfers. Any transaction requiring our consent under this Section 9 in which our consent is not first obtained will be void, as between you and us.
You will continue to be liable
for payment and performance of your obligations under this Agreement until we terminate this Agreement, all your financial obligations to us are paid and all System identification is removed from the Facility.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if Baymont Inn Suites does not approve a franchise transfer, it may, at its sole discretion, allow the franchisee to terminate the franchise agreement when they sell the facility. In this case, the franchisee would be required to pay liquidated damages as outlined in Section 12.1 of the franchise agreement. This payment is due when the franchisee transfers possession of the facility.
In addition to liquidated damages, the franchisee must also provide general releases from themselves and each of their owners. The franchisee must ensure that all outstanding amounts owed to Baymont Inn Suites and its affiliates by the franchisee, their owners, their affiliates, the transferee, and their respective owners and affiliates are paid under the agreement or otherwise.
It is important to note that Baymont Inn Suites's consent to a transfer does not constitute a waiver of any claims they may have against the franchisee, nor does it waive their right to demand strict compliance from the transferee with the terms of the agreement. If a franchisee attempts to transfer the franchise without obtaining Baymont Inn Suites's consent, the transaction will be considered void between the franchisee and Baymont Inn Suites. The franchisee will remain liable for all obligations under the agreement until it is terminated, all financial obligations are fulfilled, and all Baymont Inn Suites system identification is removed from the facility.