Does Baymont Inn Suites have any restrictions on assignments and subcontracts by the franchisor?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
GUARANTY OF PERFORMANCE
For value received, WYNDHAM HOTELS & RESORTS, INC., a Delaware corporation, located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, absolutely and unconditionally guarantees the performance by its indirect subsidiary, BAYMONT FRANCHISE SYSTEMS, INC., a Delaware corporation, with its registered office located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, as franchisor, of all its obligations in accordance with the terms and conditions of its franchise or license agreements and other agreements issued pursuant to the Baymont Inn & Suites Franchise Disclosure Document and entered into from and after the date hereof as such franchise, license and other agreements shall have been or may hereafter be amended, modified, renewed or extended from time to time. This Guaranty shall continue in force until all such obligations of BAYMONT FRANCHISE SYSTEMS, INC. shall have been satisfied or until such liability of BAYMONT FRANCHISE SYSTEMS, INC. to such franchisees or licensees has been completely discharged, whichever first occur. WYNDHAM HOTELS & RESORTS, INC. shall not be discharged from liability hereunder as long as any such claim by a franchisee or licensee against BAYMONT FRANCHISE SYSTEMS, INC. remains outstanding. Notice of acceptance is waived. Notice of default on the part of BAYMONT FRANCHISE SYSTEMS, INC. is not waived. This Guaranty shall be binding upon WYNDHAM HOTELS & RESORTS, INC., its successors and assigns.
IN WITNESS WHEREOF, WYNDHAM HOTELS & RESORTS, INC. has, by a duly authorized officer, executed this Guaranty of Performance in Parsippany, New Jersey as of the 31st day of March 2025.
WYNDHAM HOTELS & RESORTS, INC. a Delaware corporation
Michele Allen
Chief Financial Officer
ATTEST:
Michael Heistein
Senior Vice President, Legal
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–85)
What This Means (2025 FDD)
The 2025 Baymont Inn Suites Franchise Disclosure Document (FDD) outlines the franchisor's right to assign the agreement. Wyndham Hotels & Resorts, Inc. guarantees the performance of Baymont Franchise Systems, Inc.'s obligations under the franchise agreements. This guarantee remains in effect until all obligations of Baymont Franchise Systems, Inc. are satisfied or their liability to franchisees is completely discharged. Wyndham Hotels & Resorts, Inc. will not be discharged from liability as long as any claim by a franchisee against Baymont Franchise Systems, Inc. remains outstanding. This agreement is binding upon Wyndham Hotels & Resorts, Inc., its successors, and assigns.
This arrangement provides a level of security for Baymont Inn Suites franchisees, as Wyndham Hotels & Resorts, Inc., a larger entity, stands behind the obligations of the franchisor, Baymont Franchise Systems, Inc. In practical terms, this means that if Baymont Franchise Systems, Inc. were to default on its obligations, Wyndham Hotels & Resorts, Inc. would be responsible for fulfilling them.
For a prospective franchisee, this guarantee reduces the risk associated with investing in a Baymont Inn Suites franchise. It ensures that even if the franchisor faces financial difficulties or is acquired by another entity, the obligations to the franchisee will continue to be met by Wyndham Hotels & Resorts, Inc. This aspect of the franchise agreement should be carefully considered as a positive factor when evaluating the overall investment.