What specific insurance coverages are required for a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
erage that may be available to an additional insured.
Specific coverages include Commercial General Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence covering premises, products, independent contractors, bodily injury, personal injury, contractual and advertising liability, property damage, and insured contract liability; Liquor Liability with minimum coverage of $1,000,000 per occurrence as well as inclusion in excess liability coverage if beer, liquor, or alcoholic beverages are sold or served on site, including but not limited to, by restaurants or lounges, minibars, or vending machines; Comprehensive Automobile Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence on all vehicles; Worker's Compensation in compliance with state laws; Employers Liability Insurance with minimum coverage of $100,000; Business Interruption (Loss of Earnings) Insurance with a minimum of $100,000 of coverage, actual loss or twelve (12) months sustained; and Umbrella/Excess Liability Insurance at least as broad as the required underlying coverage, with minimum limits of liability of $3,000,000 per occurrence. In addition, each Franchisee with an on-site restaurant, including but not limited to an owned or leased lounge or recreational facility space, must require that the operator satisfy the minimum insurance requirements listed in the System Standards Manual.
The failure to carry insurance coverage meeting the requirements described in the System Standards is a material default under the Franchise Agreement and may be grounds for termination of the Franchise Agreement. In addition, should you for any reason fail to procure or maintain the insurance required, we have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge the cost thereof to you, which charge, together with a reasonable fee for our expenses in so a
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 53–56)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance coverages as outlined in Section 3.8 of the Baymont Franchise Agreement and the System Standards Manual. This coverage must be active at the start of construction or renovation and remain continuously in force while operating under the Baymont system. The insurance policy must name the franchisee as the insured. All coverage must be on an occurrence basis. Baymont Franchise Systems, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities; and all of their current and former subsidiaries, affiliates, successors, and assigns, as their respective interests may appear, must be included as additional insureds on each liability policy. The insurance coverage for each additional insured must be primary and not contributory with any other available insurance.
The specific required coverages include Commercial General Liability Insurance with a minimum of $1,000,000 per occurrence, covering various liabilities such as premises, products, and contractual liability. If the Baymont Inn Suites location sells or serves alcohol, Liquor Liability coverage with a minimum of $1,000,000 per occurrence is required, along with inclusion in excess liability coverage. Comprehensive Automobile Liability Insurance with a minimum of $1,000,000 per occurrence is required for all vehicles. Worker's Compensation must comply with state laws, and Employers Liability Insurance must have a minimum coverage of $100,000. Business Interruption (Loss of Earnings) Insurance requires a minimum of $100,000 of coverage for actual loss or twelve months sustained. Finally, Umbrella/Excess Liability Insurance, at least as broad as the underlying coverage, must have minimum limits of $3,000,000 per occurrence.
Franchisees with an on-site restaurant, lounge, or recreational facility must ensure that the operator meets the minimum insurance requirements listed in the System Standards Manual. Failure to maintain the required insurance coverage constitutes a material default under the Franchise Agreement and may lead to termination. Baymont Inn Suites has the right, but not the obligation, to procure the necessary insurance if the franchisee fails to do so, and the franchisee will be responsible for the cost, along with a reasonable fee for expenses incurred by Baymont Inn Suites.