Baymont by Wyndham Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$215,582 - $10,062,316
Franchise Fee
$6,000
Total US Locations
539
Business Summary
Baymont Inn & Suites franchises operate guest lodging facilities that provide overnight accommodations and related services, primarily targeting business and leisure travelers in secondary and tertiary markets. These hotels typically feature a 24-hour front desk, a business center, wireless high-speed internet, continental breakfast, a fitness room, and a covered entrance. Baymont Inn & Suites locations do not usually include extensive food and beverage facilities like full-service hotels. Franchisees can either build new hotels or convert existing ones, with each facility typically having at least 50 guest rooms, some configured as suites.
Corporate History
Baymont Franchise Systems, Inc. was incorporated on March 13, 2006, as a subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by Wyndham Hotels & Resorts, Inc. Wyndham Hotels & Resorts, Inc. itself was established on May 31, 2018, through a tax-free spin-off from Wyndham Worldwide Corporation. Baymont Franchise Systems, Inc. began offering franchises for its hotel facilities in April 2006. The brand focuses on reasonably priced hotels for business and leisure travelers in secondary and tertiary markets. Baymont Franchise Systems, Inc. does not own or operate any Baymont facilities, focusing solely on franchising and related support services.
Financial Overview
Investment Range
$215,582 - $10,062,316
Franchise Fee (Low)
$6,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$8,515
Equipment Costs (High)
$834,072
Working Capital
$142,638
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's parent company, Wyndham Hotels & Resorts, Inc., exhibits a strong financial position, providing an unqualified audit opinion on its financial statements as of December 31, 2023. The company reported healthy net cash provided by operating activities, with $376 million in 2023. While total assets and stockholder's equity saw a slight decrease from 2022 to 2023, the company maintains significant assets ($4,033 million in 2023) and manages its long-term debt effectively. There are no explicit concerns about the company's ability to continue operations, and it has a stock repurchase program with substantial remaining availability. Legal contingencies, although present, are not expected to materially impact the company's combined financial position or liquidity.
Financing Details
Baymont Franchise Systems, Inc. offers several financing options to its franchisees. Franchisees may defer payment of the Initial Fee, typically for a short term (e.g., 90 days or until the facility opens). This deferral is usually paid in installments without interest unless the payment is late. The franchisor also offers Development Incentive loans for new construction and conversion facilities. These loans are not subject to repayment unless the franchise agreement terminates early or the facility is transferred, with 1/20th of the original amount forgiven annually over the term. These loans bear no interest unless defaulted. Special Development Incentives are available for women entrepreneurs through the "Women Own the Room" program, offering a target of $2,500 per guest room, up to 50% of the franchisee's equity investment, and may include additional support. Similarly, the "Black Owners & Lodging Developers" program offers customized support, which may include a Development Incentive. To qualify for these incentives, franchisees must meet specific conditions, such as passing a final credit review and completing required pre-opening improvements. The franchisor does not typically require additional security for these loans but reserves the right to do so based on creditworthiness. Franchisees and their owners (and spouses in certain states) must sign promissory notes for any deferred or incentive financing.
Performance Metrics
Total US Locations
539
Franchised Units
539
Corporate Units
0
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
Baymont Franchise Systems, Inc. and its affiliates have been involved in several litigation cases. Currently, there are two class action lawsuits pending against the franchisor or its affiliates: one filed in 2019 by a franchisee alleging breach of contract and state franchise act violations, and another from 2014 concerning alleged improper "Destination Marketing Fees" in Canada. Additionally, Baymont Franchise Systems, Inc. has filed eight lawsuits against terminated franchisees and individuals between February 2023 and January 2024 for non-payment of outstanding amounts. In the past, Baymont and its affiliates successfully resolved several other lawsuits between 2015 and 2020. These resolved cases included class actions related to alleged misleading resort fees, antitrust claims regarding online advertising, privacy violations concerning recorded phone calls, and disputes with franchisees, most of which were settled without admission of liability or with payments to or from the Wyndham Entities.
Bankruptcy History
Baymont Franchise Systems, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Baymont Franchise Systems, Inc. does not grant renewal rights to its franchisees. However, if the franchisor and franchisee elect to renew the franchise, the franchisee must sign the then-current franchise agreement, which may contain materially different terms and conditions, and pay the prevailing Relicense Fee, which is calculated using the same formula as the Initial Fee. Renewal franchisees may be exempt from the Hospitality Management Program if their general manager completed the training within the last eight years.
Training & Support Program
Franchisor Assistance
Baymont Franchise Systems, Inc. provides comprehensive assistance to its franchisees both before and after their hotel opens. Before opening, Baymont assists with site selection approval, designates a Protected Territory, creates a Property Improvement Plan (PIP) for conversions, provides prototype architectural plans for new construction, conducts inspections, and offers access to its System Standards Manual and Approved Supplier information. Franchisees also receive initial training, including a mandatory Hospitality Management Program for their general manager, and staff opening training for new construction/conversion facilities. Ongoing support after opening includes continuous access to updated manuals and system standards, participation in Chain conferences (every 18-24 months), and regular announced and unannounced inspections. Baymont offers operational support via email, telephone, and an online platform, with periodic field visits. Franchisees receive information on Approved Suppliers and access to a Central Reservation System (CRS) and a Signature Reservation Service (SRS) to handle customer reservations. The franchisor also provides optional comprehensive revenue management programs (Standard and Premium RMS) and customer experience software (Medallia) with a Wyndham Response Service for online reviews. An optional remote local sales service and a guest engagement platform for mobile texting are also available. Additionally, franchisees must participate in annual continuing education, which includes live workshops, webinars, online courses through Wyndham University, and other resources to support their entire hotel team.
Initial Training Hours
34
Training Location
Corporate offices in Parsippany, NJ, central locations in North America, or online/virtual, with some on-site training at the franchisee's facility.
Ongoing Support
After opening, Baymont Franchise Systems, Inc. provides ongoing support to its franchisees through various channels. This includes continuous operational support via email, telephone, and an internal online platform, with periodic visits from their field support team. Baymont organizes Chain conferences approximately every 18 to 24 months and holds periodic regional summits. Franchisees have access to a customer experience software platform, currently Medallia, which aggregates guest reviews and surveys, and the franchisor offers a Wyndham Response Service to respond to certain customer surveys and online reviews. Additionally, Baymont offers optional remote local sales services to generate new business and a guest engagement platform for mobile device communication with guests. Mandatory annual continuing education is provided at a cost of $1,200 per year, covering hotel operations training through live workshops, webinars, online courses via Wyndham University, and other resources for the entire hotel team. General managers are also required to attend an annual national leadership conference every 12 to 18 months, with a conference fee billed even if attendance is missed.
Franchise Requirements
Ideal Candidate Profile
Baymont seeks franchisees who are either new operators willing to build or convert hotels, or existing hotel operators looking to renovate their facilities. While personal management is recommended, it is not required. However, if the franchisee does not personally manage the facility, they must hire a manager with significant training and experience in general management of similar lodging facilities. Baymont may also require a third-party manager if the franchisee lacks significant hotel management experience. Candidates must possess adequate financial liquidity and resources.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
absentee-allowed
Territory Type
Protected
Territory Size Requirements
Baymont will assign each franchisee a Protected Territory, where Baymont will not own, operate, lease, manage, franchise, or license another Baymont facility without the franchisee's consent. This Protected Territory is negotiated before signing the Franchise Agreement, considering factors such as the market's nature (urban, suburban, rural), population density, demographics, proximity to transportation, major attractions, commercial development, traffic patterns, competition, and accessibility. The territory may be defined as a radius from the facility's door, an irregular area bounded by highways, streets, governmental jurisdictions, natural boundaries, or by latitude and longitude, described in words, depicted on a map, or both. Baymont states there is no minimum Protected Territory offered.
Staffing Notes
Baymont Franchise Systems, Inc. allows franchisees to either personally manage their facility or hire a management company or individual manager. If a franchisee does not personally manage the facility, they must hire a manager with significant training and experience in general management of similar lodging facilities, and this manager must successfully complete the franchisor's training program. The franchisee is solely responsible for all employment decisions, including recruitment, hiring, scheduling, compensation, and termination. All facility personnel in designated positions must attend and successfully complete initial training programs, including Human Trafficking Prevention Training and "Count on Us" training. Opening training for staff is provided on-site for new construction and conversion hotels, with duration and cost dependent on the number of rooms. Baymont also offers ongoing learning and development support for the entire hotel team through Wyndham University, including regional workshops and service culture materials.