Under what conditions can Baymont Inn Suites terminate the agreement immediately?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2 Our Right to Terminate. If any one of the following events occurs, then to the extent permitted by applicable law, we shall have the right, at our option and without liability or further obligation to you, to immediately terminate this Agreement (including any of the applicable Service Offering(s)): (a) you fail to make any payment when due under this Agreement (including any of the applicable Service Offering(s)), the Franchise Agreement or any other agreement between you and us; (b) you breach any covenant, warranty or terms and conditions set forth in this Agreement (including any of the applicable Service Offering(s)), the Franchise Agreement or any other agreement between you and us; (c) we cease to provide the Products and/or Services; (d) the Franchise Agreement expires or terminates for any reason; or (e) we assign, transfer, dissolve, terminate, or wind-down our business, under applicable law. We may terminate this Agreement for convenience at any time provided that we shall provide you with no less than sixty (60) days' advance
notice.
- 13.3 Termination Due to Bankruptcy or Insolvency.
Either Party shall have the right to immediately terminate this Agreement in the event (a) a bankruptcy, reorganization, receivership, insolvency or other similar proceeding for the arrangement of such Party's obligations is instituted by such Party, or involuntarily against such Party and not dismissed within ninety (90) days; (b) the other Party is unable to pay its debts as they become due or admits in writing its inability to pay its debts generally; or (c) the other Party becomes subject to any statutory, administrative or court order or other official action which prevents either from continuing to fulfill its obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites Franchise Disclosure Document, Baymont Inn Suites has the right to immediately terminate the agreement under certain conditions, provided it is permitted by applicable law. These conditions include failure to make payments when due under the agreement, the Franchise Agreement, or any other agreement between the franchisee and Baymont Inn Suites. Additionally, Baymont Inn Suites can terminate immediately if the franchisee breaches any covenant, warranty, or terms and conditions outlined in these agreements.
Baymont Inn Suites can also immediately terminate the agreement if either party becomes involved in bankruptcy, reorganization, receivership, insolvency, or similar proceedings, especially if such proceedings are instituted against a party and not dismissed within 90 days. Immediate termination is also possible if either party is unable to pay debts as they become due or admits in writing their inability to pay debts generally. Furthermore, Baymont Inn Suites can terminate the agreement immediately if either party becomes subject to any statutory, administrative, or court order or other official action that prevents them from fulfilling their obligations under the agreement.
These termination rights are subject to legal limitations, and the franchisee may have certain rights under state laws that could affect the enforceability of these provisions. It is important for a prospective franchisee to understand these conditions, as immediate termination could have significant financial and operational consequences. Franchisees should consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement and any related agreements.