Under what conditions can Baymont Inn Suites grant extensions for the Improvement Obligation?

According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Baymont Inn Suites may, at its sole discretion, grant extensions of time to perform any phase of the Improvement Obligation for both new construction and conversion facilities. The Improvement Obligation refers to the franchisee's duty to either renovate/upgrade an existing facility or construct a new one according to the Approved Plans and System Standards. The FDD specifies that the grant of an extension does not waive any other default existing at the time the extension is granted.

For conversion facilities, franchisees must begin renovation no later than 30 days after the Effective Date. For new construction facilities, franchisees must commence construction no later than 18 months after the Effective Date and complete it within 30 months. Time is of the essence for completing these obligations, but Baymont Inn Suites retains the right to grant extensions.

If Baymont Inn Suites chooses to grant an extension of any deadline, including the Facility's Opening Date, they may require the franchisee to pay a non-refundable extension fee of $5,000. This fee, if assessed, is payable within ten days of the Facility's Opening Date. Additionally, the franchisee must pay a Reinspection Fee if the facility fails the completion inspection or doesn't meet standards, requiring Baymont Inn Suites representatives to return for another inspection. This fee covers the cost of the additional inspection and ensures compliance with Baymont Inn Suites's standards before opening.

This discretionary power allows Baymont Inn Suites to address unforeseen delays or hardships faced by franchisees during the renovation or construction process. However, it also introduces an element of uncertainty, as franchisees cannot automatically assume they will receive an extension. Franchisees should maintain open communication with Baymont Inn Suites and diligently work to meet the initial deadlines to minimize the risk of incurring extension fees or other penalties.