What revenues are specifically excluded from 'Gross Room Revenues' for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Room Revenues means gross revenues attributable to or payable for rentals of guest (sleeping) rooms at the Facility, including all credit transactions, whether or not collected, guaranteed no-show revenue, net of chargebacks from credit card issuers, any proceeds from any business interruption or similar insurance applicable to the loss of revenues due to the nonavailability of guest rooms and any miscellaneous fees charged to all guests regardless of the accounting treatment of such fees. Excluded from Gross Room Revenues are separate charges to guests for Food and Beverage (including room service); actual telephone charges for calls made from a guest room; key forfeitures and entertainment (including Internet fees and commissions); vending machine receipts; and federal, state, and local sales, occupancy, and use taxes. Gross Room Revenue is further described in System Standards.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, 'Gross Room Revenues' are specifically defined for the purpose of calculating fees. It is important for prospective franchisees to understand what is included and, more importantly, what is excluded from this definition because it directly impacts the amount of fees they will pay to Baymont Inn Suites.
Specifically, the following revenue sources are excluded from the calculation of Gross Room Revenues: separate charges to guests for Food and Beverage (including room service), actual telephone charges for calls made from a guest room, key forfeitures and entertainment (including Internet fees and commissions), vending machine receipts, and federal, state, and local sales, occupancy, and use taxes. These exclusions reduce the revenue base upon which Baymont Inn Suites calculates its franchise fees.
Understanding these exclusions allows a franchisee to accurately forecast revenue and calculate the associated franchise fees. It also provides clarity in the event of an audit, ensuring that both the franchisee and Baymont Inn Suites are aligned on what constitutes Gross Room Revenues. Franchisees should pay close attention to how these terms are defined and applied in practice to avoid potential disputes.