What are the requirements for a transferee to qualify as a franchisee when transferring a Baymont Inn Suites franchise?
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.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, a transferee must meet several conditions to qualify as a franchisee. The transferee must complete and submit an application, providing the same supporting documents as a new franchise applicant. Baymont Inn Suites will then assess whether the transferee qualifies, based on the specific circumstances of the transfer.
In addition to the application, the transferee must pay the application fee and relicensing fee that are in effect at the time of the transfer. The transferee is also required to sign the current version of the Franchise Agreement offered for conversion transactions. Furthermore, the transferee must agree to renovate the facility to meet system standards, 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's standards for conversion facilities. Alternatively, Baymont Inn Suites may limit the transferee's term to the remaining balance of the original franchise term or add a clause allowing either party to terminate the agreement after a certain period. The transfer is not effective until all these conditions are met. However, Baymont Inn Suites will not unreasonably withhold, delay, or condition 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.