What is the 'Loyalty Program Charge' for a Baymont Inn Suites franchise used for?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Loyalty Program Charge means the fee you pay us under Section 3.4.4 and Schedule C for a frequent guest rewards program or other special marketing programs that we may create or undertake and require participation by Chain Facilities.
We charge a Loyalty Program Charge for your participation in the Wyndham Rewards or successor guest loyalty program. The Loyalty Program Charge is 4.25% - 5.5% of any amounts on which members of the Loyalty Program earn points or other program currency at the Facility as defined in the Front Desk Guide or any other program rules, which are System Standards. The Loyalty Program Charge may vary within the stated range based on the number of Wyndham Rewards valid enrollments obtained by the Facility during a defined measurement period, or other metric we determine in our sole discretion from time to time, as described in the Front Desk Guide ("Loyalty Metric"). We will proactively match and award members with points or other program currency they earn at the Facility even if they do not present their Wyndham Rewards membership card upon check-in. You will be billed monthly in arrears for points or other program currency awarded to members during the preceding month. If you do not achieve a certain number of Wyndham Rewards valid enrollments during the defined measurement period (or other Loyalty Metric that we may require from time to time), you must pay us a Missed Valid Enrollment Fee of up to $400 per month, as described in the Front Desk Guide. If you do not process a member's points in a timely manner and we must resolve the issue with the member, we will charge you a Loyalty Member Services Administration Fee as described in the Front Desk Guide.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Loyalty Program Charge is a fee franchisees pay for participation in the Wyndham Rewards program, or other special marketing programs that Baymont Inn Suites may create. This charge is outlined in Section 3.4.4 and Schedule C of the franchise agreement.
The Loyalty Program Charge ranges from 4.25% to 5.5% of the revenue generated from loyalty program members earning points at the franchisee's Baymont Inn Suites location. The exact percentage within this range can fluctuate based on the number of Wyndham Rewards enrollments the facility obtains during a defined period, or another metric determined by Baymont Inn Suites. Franchisees are billed monthly for the points awarded to members in the preceding month, even if the member does not present their Wyndham Rewards card at check-in, as Baymont proactively matches and awards points.
If a Baymont Inn Suites franchisee fails to meet a certain enrollment target, they may incur a Missed Valid Enrollment Fee of up to $400 per month. Additionally, franchisees may be charged a Loyalty Member Services Administration Fee if they do not process a member's points promptly, requiring Baymont Inn Suites to resolve the issue. These fees are further described in the Front Desk Guide.