What is required of a transferee if a transfer of a Baymont Inn Suites facility is to occur?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
If we do not approve the Transfer, we may, in our sole discretion, allow you to terminate the Franchise when you sell the Facility and pay us Liquidated Damages under Section 12.1.
Such payment would be due and payable when you transfer possession of the Facility.
We also must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you, your owners, your affiliates, the transferee, its owners and affiliates, under this Agreement or otherwise.
Our consent to a Transfer is not a waiver of (i) any claims we may have against you; or (ii) our right to demand strict compliance from the Transferee with the terms of its agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, if a transfer of a facility is to occur, the transferee must meet several requirements. The transferee must complete and submit an application, qualify to be a franchisee based on Baymont Inn Suites's standards, and provide the same supporting documents required of a new franchise applicant. They also need to pay the Application Fee and Relicense Fee that are in effect at the time of the transfer. The transferee is required to sign the current Franchise Agreement used for conversion transactions and agree to renovate the facility as if it were an existing facility converting to the Baymont Inn Suites system.
Baymont Inn Suites will provide a Property Improvement Plan (PIP) after receiving the transferee's application. Structural changes to the facility may be required if it no longer meets the System Standards for conversion facilities. Alternatively, Baymont Inn Suites may approve the transfer but limit the transferee's term to the balance of the original term or add a right to terminate the agreement, which either party can exercise after a certain period. The consent to the transaction is not effective until all these conditions are met.
Furthermore, the transferee may have to assume the obligations of the prior franchisee. The transferee must perform any obligations (financial and otherwise) of the Prior Franchisee under the Prior Agreement that are not paid or performed as of the Effective Date, including without limitation, the obligation to pay any unpaid Royalties, System Assessment Fees or other amounts due Baymont Inn Suites and to correct any uncured defaults, except as may be expressly superseded by this Agreement. Baymont Inn Suites may also require the transferee or their staff to complete training on the use of a property management or similar computer system and software for accessing the Reservation System and pay their then-current fees for such training.
If Baymont Inn Suites does not approve the transfer, they may allow the transferor to terminate the Franchise when they sell the Facility, provided the transferor pays Liquidated Damages. Baymont Inn Suites must also receive general releases from the transferor and each of their owners, and payment of all amounts then owed to Baymont Inn Suites and their affiliates by the transferor, their owners, their affiliates, the transferee, its owners and affiliates, under the Agreement or otherwise. Baymont Inn Suites's consent to a Transfer is not a waiver of any claims they may have against the transferor, or their right to demand strict compliance from the Transferee with the terms of its agreement.