What is the 'Rate of the Day' that a Baymont Inn Suites franchisee must establish?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the terms and conditions contained herein, the receipt and sufficiency of which are hereby acknowledged, you and we agree as follows:
- 1. Provision of Services. We will provide the Service in accordance with the Revenue Management Policies and Best Practices ("RM Policies") set forth in System Standards. You will establish the reference room rate for the Facility upon which all other rates are based ("Rate of the Day") and retain ultimate control over all revenue management decisions. Subject to the foregoing, by entering into this Agreement, you explicitly (i) agree to abide by the RM Policies, (ii) authorize us to access your room rates, inventory and other Facility information in our Reservation System, your Facility's property management system, your Facility's food and beverage system (if applicable), and any extranet you have with an on-line travel agency or similar distribution company, and (iii) authorize us to make adjustments to the Facility's rates, inventory and restrictions in order to comply with the RM Policies without advance notice to you. We will not, however, change the Rate of the Day without authorization from you. In addition, you may modify or reverse any change we make by notifying us, providing it is consistent with the RM Policies.
- 2. Facility Representative. You shall designate at the end of this Agreement a primary Facility representative who shall have the authority to make revenue management decisions for the Facility and a secondary representative who shall exercise such authority in the absence of the primary representative. We may communicate with these representatives by telephone, e-mail or in another manner, and may rely on any communication which we believe, in good faith, is from them. You may change your designation at any time by notifying us in accordance with Section 11(E) below. Upon our request, the Facility representative shall provide, feedback concerning the performance, operation and general acceptability of the Service, as well as recommendations for improvement.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, franchisees must establish a 'Rate of the Day,' which serves as the reference room rate for the facility upon which all other rates are based. While Baymont Inn Suites retains the right to access room rates, inventory, and other facility information to make adjustments in accordance with their Revenue Management Policies and Best Practices, they cannot change the 'Rate of the Day' without authorization from the franchisee.
This means that while Baymont Inn Suites has some control over revenue management decisions, the franchisee retains ultimate control. The franchisee can modify or reverse any changes made by Baymont Inn Suites, provided it aligns with the Revenue Management Policies. This ensures that the franchisee has the final say in setting the base rate for their rooms.
To facilitate communication and decision-making, the franchisee must designate a primary and secondary Facility representative who have the authority to make revenue management decisions for the Facility. Baymont Inn Suites may communicate with these representatives via telephone, e-mail, or other means and rely on communications believed to be from them in good faith. This ensures clear lines of communication and accountability for revenue management decisions.