Can the Initial Fee Note for a Baymont Inn Suites franchise be prepaid without penalty?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Initial Fee Note can be prepaid at any time without incurring any penalties. This provides franchisees with financial flexibility, allowing them to pay off the note early if they have the funds available, without being penalized for doing so.

However, if the Initial Fee is deferred and not paid within ten days after it is due, it will bear simple interest at a rate of either 18% per annum (1.5% per month) or the highest rate allowed by law, whichever is less. This highlights the importance of adhering to the payment schedule to avoid accruing interest charges. Defaulting on the Initial Fee Note also constitutes a default under the Franchise Agreement, which could lead to further complications.

In addition to the Initial Fee Note, Baymont Inn Suites may offer a Development Incentive to franchisees for new construction and conversion Chain Facilities. Similar to the Initial Fee Note, the Development Incentive Note may also be prepaid at any time without penalty. This provides further financial flexibility for franchisees who receive this incentive. Prospective franchisees should carefully review the terms and conditions of both the Initial Fee Note and any Development Incentive Notes to fully understand their obligations and rights.