When must a Baymont Inn Suites hotel have active insurance coverage?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You will obtain and maintain during the term of the agreement the insurance coverage required by Section 3.8 of the Baymont Franchise Agreement and under the System Standards Manual, which is outlined below. All Baymont hotels must have active insurance coverage effective at the start of construction or renovation and in continuous force while operating under the Baymont System or as a Baymont. Each insurance policy must include as a named insured the party or parties (and their respective successors or assigns) that are identified as the "Franchisee" or the "Franchisees" in the Franchise Agreement. Coverage must be on an occurrence basis. Each liability policy must name as an additional insured all of the following: Baymont Franchise Systems, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities; and all of their current and former subsidiaries, affiliates, successors, and assigns, as their respective interests may appear. Each liability policy must provide that the insurance coverage for each additional insured is primary and is not contributory with or excess of any insurance coverage that may be available to an additional insured.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 53–56)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, all Baymont Inn Suites hotels must maintain continuous and active insurance coverage while operating under the Baymont System or as a Baymont. This coverage must be in effect from the start of construction or renovation.
This requirement ensures that Baymont Inn Suites hotels are protected from various liabilities and potential financial losses. The insurance coverage must adhere to the requirements outlined in Section 3.8 of the Baymont Franchise Agreement and the System Standards Manual. The policy must include the franchisee as a named insured and Baymont Franchise Systems, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities as additional insured parties.
The insurance coverage must be on an occurrence basis, meaning it covers incidents that occur during the policy term, regardless of when a claim is filed. The liability policy for each additional insured must be primary and not contributory with any other insurance coverage available to the additional insured. Failure to maintain the required insurance coverage constitutes a material default under the Franchise Agreement and may lead to its termination. Baymont Inn Suites also has the right, but not the obligation, to procure the necessary insurance if the franchisee fails to do so, and charge the franchisee for the cost, including a reasonable fee for expenses.