What section of the Baymont Inn Suites FDD discusses assignment of the contract?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
9. Your Assignments, Transfers and Conveyances.
- 9.1 Transfer of the Facility. This Agreement is personal to you (and your owners if you are an entity). We are relying on your experience, skill and financial resources (and that of your owners and the guarantors, if any) to sign this Agreement with you. You may finance the Facility and grant a lien, security interest or encumbrance on it (but not in this Agreement) without notice to us or our consent. If a Transfer is to occur, the transferee or you must comply with Section 9.3. Your Franchise is subject to Termination when the Transfer occurs. The Franchise is not transferable to your transferee, who has no right or authorization to use the System and the Marks when you transfer ownership or possession of the Facility. The transferee may not operate the Facility under the System, and you are responsible for performing the post-Termination obligations in Section 13. You and your owners may assign, pledge, transfer, delegate, or grant a security interest in all or any of your rights, benefits and obligations under this Agreement, as security or otherwise, only with our prior written consent and after you comply with Sections 9.3 and 9.6. As a condition of our consent, if your interest in this Agreement is proposed as the collateral of a security interest, then we may require that you and your lender execute a comfort letter in the form described in our then-current disclosure document and that you pay our then-current fee for processing such a request. Transactions involving Equity Interests that are not Equity Transfers do not require our consent and are not Transfers.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–85)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, Item 23, Section 9 covers the assignment, transfers, and conveyances of the franchise agreement. Specifically, Section 9.1 discusses the transfer of the facility, noting that the agreement is personal to the franchisee and any owners. Baymont Inn Suites emphasizes its reliance on the franchisee's experience, skills, and financial resources.
The FDD states that the franchisee can finance the facility and grant a lien on it without needing to notify or obtain consent from Baymont Inn Suites. However, if a transfer is to occur, both the franchisee and the transferee must comply with Section 9.3. The franchise is subject to termination upon transfer, and the transferee does not have the right to use the Baymont Inn Suites system or marks unless they meet specific requirements.
Furthermore, the franchisee needs prior written consent from Baymont Inn Suites to assign, pledge, transfer, delegate, or grant a security interest in the agreement. Baymont Inn Suites may require a comfort letter from the lender and payment of a processing fee if the agreement is proposed as collateral for a security interest. Transactions involving equity interests that are not equity transfers do not require consent.