What interest rate does Baymont Inn Suites charge on late Recurring Fees?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ntative maintenance service, including a mobile |
| Type of Fee | Amount | Due Date | Remarks 1 |
|---|---|---|---|
| Remedies, Non-Compliance and Other | application, provided by a third party to help you manage your housekeeping and maintenance processes. We may offer as an option or, in the future, mandate a certain program or provider. (See Item 11) | ||
| Extension Fee | $10,000. | Within 10 days of the Opening Date. | Payable any time we agree to extend your opening deadlines beyond those dates established in Schedule D of the Franchise Agreement. |
| Interest | Lesser of 1.5% per month or the maximum rate permitted by law. | When we invoice you. | Payable on any amount of Recurring Fees not paid by due date. |
| Returned Check Fee | Currently, $100 for each occurrence. | When we incur or demand costs. | Includes checks you submit to us that are dishonored by your bank or other financial institution. |
| Paper Check Fee | $160 processing fee per each occurrence |
Source: Item 6 — OTHER FEES (FDD pages 30–45)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a franchisee fails to pay Recurring Fees by the due date, Baymont Inn Suites charges interest. The interest rate is the lesser of 1.5% per month or the maximum rate permitted by law. This interest is applied to any unpaid amount of Recurring Fees and is invoiced to the franchisee.
This means that if a Baymont Inn Suites franchisee is late on payments such as Royalty or System Assessment Fees, they will incur interest charges. The specific amount will depend on the outstanding balance and the prevailing legal maximum interest rate in their jurisdiction. Franchisees should be aware of these potential charges and ensure timely payment of all Recurring Fees to avoid them.
It is common practice in the franchise industry to charge interest on overdue fees. The rate charged by Baymont Inn Suites appears to be within the typical range, but franchisees should confirm that the 1.5% monthly rate does not exceed the maximum permitted by law in their specific location. Franchisees should also note that this interest charge is in addition to any other remedies Baymont Inn Suites may pursue for non-payment, as outlined in the Franchise Agreement.