What is the 'Reconnection Fee' for a Baymont Inn Suites franchise, and when must it be paid?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
n 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.
- 9.3 Conditions. We may condition and withhold our consent to a Transfer when required under this Section 9 until the transferee and you meet certain conditions; however, we will not unreasonably withhold, delay or condition our consent to a Transfer if the Facility is then financed under a program in which the United States Small Business Administration ("SBA") guarantees the financing or its repayment. If a Transfer is to occur, the transferee (or you, if an Equity Transfer is involved) must first complete and submit our application; qualify to be a franchisee in our sole discretion, given the circumstances of the proposed Transfer; provide the same supporting documents as a new franchise applicant; pay the Application Fee and Relicense Fee then in effect; sign the form of Franchise Agreement we then offer in conversion transactions; and agree to renovate the Facility as if it were an existing facility converting to the System, as we reasonably determine. We will provide a required PIP after we receive the transferee's Application. We may require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities, or, in the alternative, condition our approval of the Transfer on limiting the transferee's term to the balance of your Term, or adding a right to terminate without cause exercisable by either party after a period of time has elapsed. Our consent to the transaction will not be effective until these conditions are satisfied.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the term 'Reconnection Fee' is not explicitly defined for Baymont Inn Suites. However, the document does mention fees associated with transferring a franchise, which may be relevant in a situation where a franchise is being 'reconnected' or transferred to a new owner.
Specifically, if a transfer of the Baymont Inn Suites franchise is to occur, the transferee must pay the Application Fee and Relicense Fee then in effect. The Application Fee is a non-refundable fee of $2,500, which is applied to the Initial Fee or Relicense Fee. The Relicense Fee is paid if you are a transferee of an existing facility or are renewing an existing franchise. The remainder of the Relicense Fee, after applying the $2,500 Application Fee, is paid when you sign the Franchise Agreement.
Additionally, if Baymont Inn Suites performs a quality assurance inspection of the Facility and the Facility fails, you refuse to cooperate with their representative, or you refuse to comply with their published inspection System Standards, then you will pay them when invoiced for any Reinspection Fee specified in the System Standards Manual plus the reasonable travel, lodging and meal costs their representative incurs for a reinspection. You also will be charged the Reinspection Fee if they must return to the Facility to inspect it as a result of your failure to complete any Improvement Obligation by the deadline established in the PIP, as set forth in Schedule D. It is important to note that the FDD does not explicitly use the term 'Reconnection Fee,' so prospective franchisees should seek clarification from the franchisor regarding any fees associated with reinstating or 'reconnecting' a franchise agreement.