factual

Who is prohibited from disclosing the terms of the Baymont Inn Suites agreement?

Baymont_Inn_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 9.2 Financing Documents. Neither you, nor any of your Equity Interest owners, shall represent in any proposed financing arrangement to any proposed lender or participant in a private or public investment offering that we or any of our affiliates are or shall be in any way responsible for your obligations or financial projections, if any, set forth in such financing arrangement or investment offering or that we or any of our affiliates are or shall be participating in such private or public investment offering. In addition, any proposed financing arrangement where the service mark "Baymont Inn & Suites" appears, or a reference to this Agreement appears, shall contain a disclaimer in bold face type substantially as follows: THE BORROWER IS A PARTY TO AN AGREEMENT WITH BAYMONT FRANCHISE SYSTEMS, INC. TO OPERATE HOTELS USING THE SERVICE MARK "BAYMONT INN & SUITES." NEITHER BAYMONT FRANCHISE SYSTEMS, INC. NOR ITS AFFILIATES OWN ANY SUCH HOTELS OR ARE A PARTY TO THIS FINANCING AND HAVE NOT PROVIDED OR REVIEWED, AND ARE NOT RESPONSIBLE FOR, ANY DISCLOSURES OR OTHER INFORMATION SET FORTH HEREIN. Also, at least fifteen (15) days prior to closing such financing, you shall submit to us a written statement certifying that you have not misrepresented or overstated your relationship with us and our affiliates or your rights to use the Marks.

Source: Item 23 — RECEIPTS (FDD pages 97–443)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, Baymont Inn Suites outlines specific restrictions regarding financial representations made by franchisees. Specifically, neither the franchisee, nor any of their Equity Interest owners, are allowed to represent to any potential lender or participant in a private or public investment offering that Baymont Franchise Systems, Inc. or its affiliates are responsible for the franchisee's obligations or financial projections. This restriction also applies to representations that Baymont Inn Suites or its affiliates are participating in any private or public investment offering.

Furthermore, if the service mark "Baymont Inn & Suites" or a reference to the Franchise Agreement appears in any proposed financing arrangement, a disclaimer in bold face type must be included. This disclaimer should state that the borrower is a party to an agreement with Baymont Franchise Systems, Inc. to operate hotels using the service mark and that neither Baymont Franchise Systems, Inc. nor its affiliates own any such hotels, are a party to the financing, or are responsible for any disclosures or other information set forth in the financing arrangement.

Prior to closing any financing, the franchisee must submit a written statement to Baymont Inn Suites certifying that they have not misrepresented or overstated their relationship with Baymont Inn Suites and its affiliates or their rights to use the Marks. This provision aims to protect Baymont Inn Suites from liability related to the franchisee's financial arrangements and ensures that potential lenders or investors are not misled about the extent of Baymont Inn Suites' involvement or responsibility.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.