Is Baymont Inn Suites obligated to supplement funds for marketing activities?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3.1 We will promote public awareness and usage of Chain Facilities by implementing advertising, promotion, publicity, market research, loyalty marketing and other marketing programs, training programs, and related activities as we deem appropriate. We will determine in our discretion: (i) the nature and type of media placement; (ii) the allocation (if any) among international, national, regional and local markets; and (iii) the nature and type of advertising copy and other materials and programs. We or an affiliate may be reimbursed from System Assessment Fees for the reasonable direct and indirect costs, overhead or other expenses of providing marketing services. We, or an affiliate, may be reimbursed from the Marketing Fund for the reasonable direct and indirect costs, overhead, or other expenses of providing marketing services. We are not obligated to supplement or advance funds available from System franchisees to pay for marketing activities. We do not promise that the Facility or you will benefit directly or proportionately from marketing activities and we have no fiduciary duty regarding the management of marketing activities or the Marketing Fund.
- 4.3.2 We may, at our discretion, implement special international, national, regional or local promotional programs (which may or may not include the Facility) as we deem appropriate and may make available to you (to use at your option) media advertising copy and other marketing materials at prices that are designed to reasonably cover the materials' direct and indirect costs.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Baymont Inn Suites is not required to add to the funds collected from franchisees to cover marketing expenses. Baymont Inn Suites will promote the awareness of its facilities by implementing advertising, market research, and loyalty marketing programs. Baymont Inn Suites has the discretion to determine the nature and type of media placement, the allocation among international, national, regional, and local markets, and the nature and type of advertising copy and other materials and programs. Baymont Inn Suites or an affiliate may be reimbursed from System Assessment Fees or the Marketing Fund for the reasonable direct and indirect costs, overhead, or other expenses of providing marketing services.
Baymont Inn Suites also states that it does not promise that the franchisee will benefit directly or proportionately from marketing activities and that it has no fiduciary duty regarding the management of marketing activities or the Marketing Fund. Baymont Inn Suites may implement special international, national, regional, or local promotional programs, which may or may not include the franchisee's facility, and may make available to the franchisee media advertising copy and other marketing materials at prices that are designed to reasonably cover the materials' direct and indirect costs.
This means that while Baymont Inn Suites engages in marketing activities to promote the brand, franchisees should not expect a direct correlation between their fees paid and the marketing benefits they receive. Furthermore, Baymont Inn Suites retains significant control over marketing decisions and is not obligated to use its own funds to supplement franchisee contributions. This arrangement is fairly typical in franchising, where franchisors manage marketing funds and have broad discretion in how they are spent to benefit the overall system.