What obligations does a Baymont Inn Suites franchisee have after termination if they transfer the Facility?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a franchisee transfers the facility after termination, they are still liable for certain obligations. Specifically, the franchisee remains responsible for payment and performance of all obligations under the Franchise Agreement until Baymont Inn Suites terminates the agreement. This includes ensuring all financial obligations to Baymont Inn Suites are paid in full and that all System identification is removed from the facility.

This means that even after transferring the facility to a new owner, the original franchisee is not fully released from their contractual duties until Baymont Inn Suites formally ends the agreement. This continued liability could include ongoing financial responsibilities or the need to rectify any outstanding issues related to the facility's compliance with Baymont Inn Suites's standards. The franchisee must ensure that the facility is completely de-identified, meaning all Baymont Inn Suites signage and branding are removed.

Furthermore, the franchisee is required to provide Baymont Inn Suites with evidence of compliance with these post-termination obligations within 30 days after termination or expiration of the agreement. Failure to meet these obligations could result in further action from Baymont Inn Suites to enforce compliance, potentially leading to additional costs or legal issues for the former franchisee. It is important for franchisees to meticulously document their compliance with all post-termination requirements to avoid any disputes with Baymont Inn Suites after transferring the facility.