Under what conditions might Baymont Inn Suites not initiate a suit against infringers of the System?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us promptly of (i) any adverse or infringing uses of the Copyrighted Materials, Confidential Information or other System intellectual property, or (ii) any threatened or pending litigation related to the System against (or naming as a party) you or us of which you become aware. We alone handle disputes with third parties concerning use of all or any part of the System. You will cooperate with our efforts to resolve these disputes. We need not initiate suit against imitators or infringers who do not have a material adverse impact on your Facility, or any other suit or proceeding to enforce or protect the System in a matter we do not believe to be material. We also have the right to keep all sums obtained in settlement or as a damages award in any proceeding or litigation without any obligation to share any portion of the settlement sums or damages award with you. You will cooperate with our efforts to resolve these disputes.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 78–79)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, Baymont Inn Suites retains control over disputes concerning the use of any part of its System. However, Baymont Inn Suites is not obligated to pursue legal action against imitators or infringers if their actions do not have a significantly negative impact on a franchisee's facility.
This means that if a third party is infringing on Baymont Inn Suites's trademarks or other intellectual property, but the infringement is minor and does not demonstrably harm a Baymont Inn Suites location, Baymont Inn Suites may choose not to sue. This decision is at Baymont Inn Suites's discretion, based on their assessment of the materiality of the impact.
Furthermore, the FDD states that Baymont Inn Suites has the right to retain all sums obtained from settlements or damages awarded in any legal proceedings, without any obligation to share these funds with franchisees. This underscores that while franchisees are required to report any infringements or potential litigation, the ultimate decision to pursue legal action and the financial benefits derived from it rest solely with Baymont Inn Suites.