What happens if a Baymont Inn Suites franchisee fails to maintain the required insurance?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit to us, annually, a copy of the certificate of or other evidence of renewal or extension of each such insurance policy as required by the System Standards.
If you fail to procure or maintain the required insurance, then we will have the right (without any obligation) to procure such insurance at your cost plus a reasonable fee.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage as outlined in the System Standards Manual. They must also provide annual proof of this insurance to Baymont Franchise Systems, Inc.
If a franchisee fails to secure or maintain the necessary insurance, Baymont Inn Suites has the right, but not the obligation, to obtain the required insurance on behalf of the franchisee. The franchisee will be responsible for covering the cost of this insurance, along with a reasonable fee charged by Baymont Inn Suites.
This provision protects Baymont Inn Suites from potential liabilities arising from the franchisee's operations. It also ensures that the franchised location meets minimum insurance standards, which is typical in the franchise industry. Prospective franchisees should carefully review the System Standards Manual to understand the specific insurance requirements and associated costs to avoid unexpected expenses.