What does the Three-Party Agreement define as the 'Primary Agreements' in relation to a Baymont Inn Suites franchise?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement. Franchisee and Franchisor entered into that certain franchise, license or membership agreement, dated, 20 (the "Franchise Agreement"), related to a guest lodging facility located at, designated as Unit # (the "Facility"). The Franchise Agreement and certain ancillary agreements related to the Franchise Agreement collectively are referred to as the "Primary Agreements." Pursuant to the Primary Agreements, Franchisee operates the Facility as a ® franchised location. Capitalized terms used and not defined in this Agreement shall have the meanings given to them in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, the Three-Party Agreement defines the 'Primary Agreements' as the Franchise Agreement itself, along with certain ancillary agreements related to the Franchise Agreement. The Franchise Agreement is a franchise, license, or membership agreement between the franchisee and Baymont Inn Suites, related to a guest lodging facility at a designated unit.
These Primary Agreements dictate how the franchisee operates the facility as a franchised location. Capitalized terms within the Three-Party Agreement, but not specifically defined in it, will have the same meanings as defined in the Franchise Agreement.
For a prospective Baymont Inn Suites franchisee, understanding the scope of the 'Primary Agreements' is crucial, as these agreements outline the core obligations and rights of both the franchisee and franchisor. The Three-Party Agreement itself exists to provide comfort to a lender who is financing the franchise, and its terms are contingent on the franchisee's adherence to the 'Primary Agreements'.