Baymont Inn & Suites

The franchise fee of 26,000 is significantly below the typical range of 35,000-75,000 for hotel franchises. What is the rationale for this lower fee structure, and does it reflect different support levels or market positioning compared to competitors?

The franchisor has initiated 21 cases total, far exceeding the typical 0-3 cases for this category. What are the primary reasons for this litigation volume, and how many remain unresolved?

Of the 2 pending litigation cases, what are the general nature and anticipated resolution timeframes? How might these cases impact franchisee operations or the system?

Closures have increased from 20 units in 2022 to 29 in 2024. What specific factors are driving this upward closure trend, and do exit patterns differ by geography or unit age?

The agreement provides no renewal options after the initial 20-year term. What happens to franchise agreements at the end of the 20-year term? Can existing franchisees continue operations, and under what terms?

Given the absence of non-compete restrictions (0 years/0 miles), how does the franchisor protect against franchisee competition after unit closure or non-renewal?

The renewal/transfer fee equals the initial franchise fee (26,000). Are these fees assessed for both unit transfers between franchisees and franchisee renewal attempts?

What is the current status and expected outcome of the 1 case where the franchisor is defendant? Does this litigation involve system-wide issues affecting multiple franchisees?

Can you provide details on the 29 units that closed in 2024? What percentage were voluntary exits versus franchisor-initiated closures, and what were the primary causes?

The agreement requires personal guarantees with spousal signatures in community property states and mandates franchisee indemnification of the franchisor. How does this liability structure compare to competitors, and what specific claims have been made under these provisions?

Late payment interest is set at 1.5% monthly (18% annually). In the past 3 years, how many franchisees have incurred late payment penalties, and what were the average arrears amounts?

The termination clause allows cure periods as short as 10 days for payment defaults. How frequently have franchisees been terminated for payment defaults versus other causes, and what support is provided for franchisees experiencing cash flow difficulties?

Item 19 financial data is available. What are the median and average unit volumes reported by franchisees, and what percentage of units provided financial reporting data?

The territory is protected but not exclusive. How does the franchisor define territory boundaries, and have there been disputes over encroachment or territory overlap?

With zero renewal options, how many of the current 547 units were opened within the past 20 years? How many original franchisees remain in the system?

What mandatory participation requirements exist for supplementary services or products, and how are costs structured for franchisees?

Of the 48 units transferred in 2022 and 28 transferred in 2023-2024, what percentage were approved transfers to new franchisees versus sales back to the franchisor?

Are there any class action lawsuits, regulatory investigations, or complaints filed against the franchisor with state attorneys general or franchise regulators?

The Investment Costs score of 88 significantly exceeds the typical range for this category. What capital requirements beyond the 26,000 franchise fee should prospective franchisees anticipate for real estate, construction, and equipment?

How many of the 29 units closed in 2024 involved franchisee default versus voluntary closure due to market conditions or business decisions?