During a suspension of services, is a Baymont Inn Suites franchisee still obligated to pay fees?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Because we still incur costs on your behalf, you must continue to pay all Fees associated with Products and/or Services under this Agreement (including any of the applicable Service Offering(s)) during any such suspension period.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, franchisees are obligated to continue paying all fees associated with products and/or services, even during a period of service suspension. This obligation remains in effect as long as the Franchise Agreement is active.
This means that even if Baymont Inn Suites suspends services to a franchisee, perhaps due to a breach of contract, the franchisee's financial obligations do not automatically cease. The franchisee must continue to pay the fees associated with the products and services outlined in the agreement. This could create a significant financial burden for a franchisee who is not receiving the full benefits of the franchise system during the suspension.
This policy is important for prospective franchisees to understand, as it highlights the ongoing financial commitment required even when the franchisor's services are interrupted. Franchisees should carefully review the circumstances under which services can be suspended and the implications for their fee obligations. It is also advisable to seek legal counsel to fully understand the terms of the franchise agreement and negotiate more favorable terms if possible.