How long does a Baymont Inn Suites franchisee have to complete the restoration of a facility after a casualty?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3.1 You will notify us promptly after the Facility suffers a Casualty that prevents you from operating in the normal course of business, with less than 75% of guest rooms available. You will give us information on the availability of guest rooms and the Facility's ability to honor advance reservations. You will tell us in writing within 60 days after the Casualty whether or not you will restore, rebuild and refurbish the Facility to conform to System Standards and its condition prior to the Casualty. This restoration will be completed within 180 days after the Casualty. You may decide within the 60 days after the Casualty, and if we do not hear from you, we will assume that you have decided, to terminate this Agreement, effective as of the date of your notice or 60 days after the Casualty, whichever comes first. If this Agreement so terminates, you will pay all amounts accrued prior to Termination and follow the post-Termination requirements in Section 13. You will not be obligated to pay Liquidated Damages if the Facility will no longer be used as a transient guest lodging facility for 2 years after the Casualty.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, a franchisee must notify Baymont Franchise Systems, Inc. promptly after a casualty that prevents the normal operation of the facility, specifically when less than 75% of guest rooms are available. The franchisee is required to inform Baymont Inn Suites in writing within 60 days of the casualty whether they intend to restore, rebuild, and refurbish the facility to meet System Standards and its pre-casualty condition. If the franchisee decides to restore the facility, the restoration must be completed within 180 days after the casualty.
If the franchisee does not provide written notice of their intent to restore the facility within the 60-day period, Baymont Inn Suites will assume that the franchisee has decided to terminate the Franchise Agreement. The termination becomes effective either on the date of the franchisee's notice or 60 days after the casualty, whichever occurs first. In the event of termination, the franchisee is obligated to pay all amounts accrued up to the termination date and must adhere to the post-termination requirements outlined in Section 13 of the agreement.
However, the franchisee will not be required to pay liquidated damages if the facility will no longer be used as a transient guest lodging facility for two years following the casualty. This provision provides some financial relief to the franchisee in situations where the property's use changes significantly due to the casualty. This is a fairly standard clause in franchise agreements for businesses that rely on physical locations, as it balances the franchisor's need to maintain brand standards with the franchisee's potential hardship following unforeseen events.