Under what circumstances might Baymont Inn Suites defer payment of the Initial Fee?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Fee Deferral. We may defer payment of the Initial Fee, if business circumstances warrant, in our sole discretion. The deferral is usually for a short term such as 90 days, or until the Facility opens as a Chain Facility, whichever occurs first. If deferred, you must pay the Initial Fee in one or more installments without the accrual of interest unless you do not pay the Initial Fee within ten days after it is due. The number of payments may vary based on business circumstances, but generally requires up to three equal installments over a 90-day period. We do not require any security for the Initial Fee Note. The Initial Fee Note may be prepaid at any time without penalty. You and your owners must sign the Initial Fee Note in substantially the form shown in Exhibit C-1. If your owners are residents of community property or certain other states, their spouses must also co-sign the Initial Fee Note. Under the Initial Fee Note, you and your guarantors, or any co-makers of the Initial Fee Note, waive traditional defenses. These defenses include presentment, demand, notice of demand, protest, notice of non-payment, notice of protest, notice of dishonor and diligence in collection. We reserve the right to modify the terms of the Initial Fee Note and/or grant extensions, novations, releases or compromises to you or any co-maker without the consent of, or affecting the liability of, any other party to the
Source: Item 10 — FINANCING (FDD pages 59–61)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the brand may defer the payment of the initial franchise fee if business circumstances warrant it. This decision is made at Baymont Inn Suites's sole discretion. If the payment is deferred, it is typically for a short term, such as 90 days, or until the facility opens as a chain facility, whichever comes first.
If Baymont Inn Suites defers the initial fee, the franchisee must pay the fee in one or more installments. These installments do not accrue interest unless the franchisee fails to pay within ten days of the due date. The number of payments can vary based on business circumstances, but generally requires up to three equal installments over a 90-day period. Baymont Inn Suites does not require any security for the Initial Fee Note, and the note may be prepaid at any time without penalty.
The franchisee and their owners must sign the Initial Fee Note, and if they reside in community property or certain other states, their spouses must also co-sign. The Initial Fee Note includes a waiver of traditional defenses such as presentment, demand, notice of demand, protest, notice of non-payment, notice of protest, notice of dishonor, and diligence in collection. Baymont Inn Suites retains the right to modify the terms of the Initial Fee Note, grant extensions, novations, releases, or compromises without affecting the liability of any other party to the note.
If the franchisee fails to make any required installment payment on time, Baymont Inn Suites may demand immediate payment of the Initial Fee Note in full. Failure to pay the Initial Fee Note within 10 days after it is due will result in a simple interest rate of the lesser of 18% per annum (1.5% per month) or the highest rate allowed by law. Defaulting on the Initial Fee Note also constitutes a default under the Franchise Agreement. If Baymont Inn Suites uses an attorney to collect the Initial Fee Note, the franchisee will be responsible for reasonable attorney's fees and all costs of collection.