Does Hawthorn Suites By Wyndham have the ability to set fees for the 'Reservation System'?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing/Reservation Contribution is equal to 2.5% of Gross Room Revenues. We reserve the right, in our sole discretion, to increase or modify the Marketing/Reservation Contribution for all Chain Facilities from time to time to cover costs (including reasonable direct or indirect overhead costs) related to such services and programs but with at least 30 days prior written notice.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, Hawthorn Suites Franchising, Inc. has the right to modify the Marketing/Reservation Contribution. This contribution covers costs related to services and programs, including the Reservation System. The Marketing/Reservation Contribution is initially set at 2.5% of Gross Room Revenues. Hawthorn Suites By Wyndham retains the discretion to increase or modify this contribution for all Chain Facilities.
This means that as a Hawthorn Suites By Wyndham franchisee, you will be required to pay a Marketing/Reservation Contribution, which is initially 2.5% of your Gross Room Revenues. This fee covers various services, including the Reservation System. However, Hawthorn Suites By Wyndham can change this percentage over time.
Hawthorn Suites By Wyndham must provide franchisees with at least 30 days prior written notice before increasing or modifying the Marketing/Reservation Contribution. This advance notice allows franchisees time to adjust their financial planning accordingly. It is important for prospective franchisees to factor in the potential for these fees to change when assessing the overall cost of the franchise.