Who is required to sign the Initial Fee Note for a Baymont Inn Suites franchise?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Initial Fee Note must be signed by you (the franchisee) and your owners. Additionally, if the owners reside in a community property state or certain other states, their spouses must also co-sign the Initial Fee Note. The Initial Fee Note is in substantially the form shown in Exhibit C-1.

Under the Initial Fee Note, franchisees and their guarantors or co-makers waive traditional defenses related to payment collection. These include presentment, demand, notice of demand, protest, notice of non-payment, notice of protest, notice of dishonor, and diligence in collection. This means that Baymont Inn Suites can pursue collection of the debt without having to provide the franchisee with all the usual legal notices and opportunities to dispute the debt.

Baymont Inn Suites retains the right to modify the terms of the Initial Fee Note or grant extensions, novations, releases, or compromises to the franchisee or any co-maker without needing consent from or affecting the liability of any other party to the note. The Initial Fee Note is not subject to setoff, offset, or recoupment. If the Franchise Agreement terminates for any reason or the franchisee transfers the Facility, Baymont Inn Suites may demand immediate payment of the Initial Fee Note in full. Failure to make timely installment payments may also trigger a demand for immediate full payment. If the Initial Fee Note is not paid within 10 days of the due date, it will accrue simple interest at the lesser of 18% per annum (1.5% per month) or the highest rate allowed by law. Defaulting on the Initial Fee Note constitutes a default under the Franchise Agreement.

If Baymont Inn Suites has to collect the Initial Fee Note through an attorney, the franchisee will be responsible for reasonable attorney's fees and all costs of collection. The Initial Fee Note may be prepaid at any time without penalty. Baymont Inn Suites may defer payment of the Initial Fee, if business circumstances warrant, in its sole discretion. The deferral is usually for a short term such as 90 days, or until the Facility opens as a Chain Facility, whichever occurs first. If deferred, the franchisee must pay the Initial Fee in one or more installments without the accrual of interest unless the Initial Fee is not paid within ten days after it is due. The number of payments may vary based on business circumstances, but generally requires up to three equal installments over a 90-day period. Baymont Inn Suites does not require any security for the Initial Fee Note.