What is the limitation on liability for direct damages under the Baymont Inn Suites agreement?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the liability for direct damages is limited to the total fees paid by the franchisee to Baymont Inn Suites during the current term of the agreement. This limitation applies regardless of the form of action, whether in contract, tort, or otherwise.

This means that if a Baymont Inn Suites franchisee suffers direct damages as a result of a breach of contract or other wrongful act by Baymont Inn Suites, the franchisee's recovery is capped at the amount of fees they have paid to Baymont Inn Suites during the current term. This could be a significant limitation on the franchisee's ability to recover their losses, especially if the damages are substantial.

It's important to note that this limitation may not be enforced by a court of competent jurisdiction. In such cases, the waiver from liability set forth in the agreement may not be recognized or enforced, potentially allowing for a different outcome regarding damages.

Prospective Baymont Inn Suites franchisees should carefully consider this limitation of liability and consult with an attorney to understand its implications. They should also inquire about the types of fees that are included in the calculation of the total fees paid, as this could affect the amount of their potential recovery.