What is the purpose of the Baymont Inn Suites Guaranty?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
To induce Baymont Franchise Systems, Inc., its successors, assigns, and affiliates ("Company") to consent to the assignment and assumption of the Primary Agreements (as defined in the Assignment and Assumption Agreement (the "Agreement") to which this Guaranty is attached), the undersigned, personally, jointly and severally ("we, "our" or "us") irrevocably and unconditionally (i) warrant to Company that Assignee's representations and warranties in the Agreement and in the Franchise Agreement are true and correct as stated; and (ii) guaranty that all of Franchisee's obligations under the Primary Agreements will be punctually paid and performed, from and after the time Assignee becomes the Franchisee under the Franchise Agreement. Capitalized terms not defined in this Guaranty have the meanings given to them in the Agreement.
Upon default by Franchisee and notice from Company, we will immediately make each unpaid payment and perform, or cause Franchisee to perform, each unperformed obligation of Franchisee under the Primary Agreements. Without affecting our obligations under this Guaranty, without notice to us, Company may extend, modify or release any indebtedness or obligation of Franchisee, or settle, adjust or compromise any claims against Franchisee. We waive notice of amendment of the Agreements. We acknowledge that the provisions of Section 17 of the Franchise Agreement, including but not limited to Section 17.4 (Remedies) and Section 17.6 (Choice of Law; Venue; Dispute Resolution, including but not limited to Section 17.6.4 (Waiver of Jury Trial)), apply to this Guaranty.
Upon the death of an individual guarantor, the estate of the guarantor will be bound by this Guaranty for obligations of Franchisee to Company existing at the time of death, and the obligations of all other guarantors will continue in full force and effect.
This Guaranty may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Guaranty is designed to induce Baymont Franchise Systems, Inc. to approve the assignment and assumption of the Primary Agreements. Under the Guaranty, the undersigned parties warrant the accuracy of the assignee's representations and warranties within the agreement and the Franchise Agreement. They also guarantee that the franchisee's obligations will be fulfilled from the moment the assignee becomes the franchisee.
In practical terms, this means that if a franchisee transfers their Baymont Inn Suites franchise to a new owner, the guarantor(s) assure that the new owner will meet all financial and operational responsibilities. If the new franchisee defaults, the guarantor(s) are obligated to cover any unpaid payments or unfulfilled duties. Baymont Franchise Systems, Inc. can modify the franchisee's obligations without affecting the guarantor's responsibilities or requiring notice to them.
The Guaranty extends to the estate of a deceased guarantor, binding it to the franchisee's obligations existing at the time of death, while the obligations of other guarantors remain in effect. This ensures Baymont Inn Suites has a continuous and reliable guarantee of performance, even in the event of a guarantor's death. The agreement also specifies that Section 17 of the Franchise Agreement, which includes remedies, choice of law, venue, and dispute resolution, including a waiver of jury trial, applies to the Guaranty.