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Baymont Inn & Suites

Baymont Franchise Systems, Inc.

Company Information

22 Sylvan WayParsippany, New Jersey 07054

[email protected]

We were incorporated on March 13, 2006. We do not do business under any other name. We are a subsidiary of Wyndham Hotel Group, LLC, a Delaware limited liability company ('Wyndham Hotel Group'), which is wholly owned by Wyndham Hotels & Resorts, Inc., a Delaware corporation ('Wyndham Hotels & Resorts') or ('WHR'). WHR guarantees the performance of our obligations under the 'Franchise Agreements' we enter into with franchisees. WHR was created by virtue of a tax-free spin-off of the hotel and transient lodging businesses of Wyndham Worldwide Corporation ('Wyndham Worldwide') on May 31, 2018. On August 2, 2017, Wyndham Worldwide announced its plan to separate its businesses into two publicly traded companies. Under the plan of separation, the hotel and transient lodging businesses of Wyndham Worldwide (operating as Wyndham Hotel Group) were spun-off into a standalone publicly traded hotel company, WHR. The remaining businesses of Wyndham Worldwide were renamed Wyndham Destinations, Inc., and continue to operate as a publicly traded timeshare and timeshare exchange company, which has subsequently changed its name to Travel + Leisure Co. as of February 17, 2021. On May 9, 2018, the Wyndham Worldwide Board of Directors approved the spin-off of WHR through the distribution of 100% of the common stock of WHR to shareholders of Wyndham Worldwide. The distributions occurred on May 31, 2018 to Wyndham Worldwide shareholders of record as of the close of business on May 18, 2018. On June 1, 2018, WHR began 'regular way' trading on the New York Stock Exchange as a separate public company.

We grant to each franchisee qualified individuals and a license in connection with the Business to use the service mark “Massage Envy®” as well as other service marks disclosed in Item 13. These service marks, together with any other trademarks, service marks, trade names, logos or other commercial symbols that we may license to Massage Envy Businesses now or in the future, are collectively referred to as the “Marks-.” The “Marks” also include our distinctive trade dress used to identify a Massage Envy Business, whether now in existence or created in the future. Each Massage Envy Business must be operated at a site that we approve and according to our standards, specifications, operating procedures and rules (collectively, the “System Standards”). Massage Envy Businesses must offer all products and services we specify and may not offer any products or services we have not Massage Envy Businesses offer a membership program under which members, for «he monthly membership fee, receive one massage or facial per month and are entitled to receive additional services at reduced member rates. Non-members may also receive services, but at tbe-higher standard rates.

22 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

7/10

Investment Accessibility

7/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Baymont Inn & Suites Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $37,100 Maximum: $61,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $7,273,195 Maximum: $10,062,316

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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