What does 'Additional Fees' refer to in the Hawthorn Suites By Wyndham Franchise Agreement?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
ORN SUITES FRANCHISING, INC.**
SCHEDULE C April 2025
I. Marketing/Reservation Contribution
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.
II. Additional Fees
A. Loyalty Program Fees
We charge a Loyalty Program Charge for your participation in the Wyndham Rewards or successor guest loyalty program. The Loyalty Program Charge is currently 4.25% - 5.5% of any amounts on which members of the Loyalty Program earn points or other program currency at the Facility as defined in the Front Desk Guide or any other program rules, which are System Standards. The Loyalty Program Charge may vary within the stated range based on the number of Wyndham Rewards valid enrollments obtained by the Facility during a defined measurement period, or other metric we determine in our sole discretion from time to time, as described in the Front Desk Guide ("Loyalty Metric"). We will proactively match and award members with points or other program currency they earn at the Facility even if they do not present their Wyndham Rewards membership number upon check–in. You will be billed monthly in arrears for points or other program currency awarded to members during the preceding month. If
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, 'Additional Fees' primarily relate to the Loyalty Program and Customer Care Costs. These fees are separate from the Marketing/Reservation Contribution, which is 2.5% of Gross Room Revenues.
The Loyalty Program Charge, specifically, ranges from 4.25% to 5.5% of the amounts on which members of the Wyndham Rewards program earn points at the Hawthorn Suites By Wyndham facility. This percentage can vary based on the number of Wyndham Rewards enrollments obtained by the facility. If a franchisee fails to meet a certain enrollment target, they may incur a Missed Valid Enrollment Fee of up to $400 per month. Additionally, franchisees may be charged a Loyalty Member Services Administration Fee if they do not process member points promptly and the franchisor has to intervene.
These additional fees can impact a franchisee's operating costs and profitability. The Loyalty Program Charge, while potentially driving business through the Wyndham Rewards program, represents a significant ongoing expense. The Missed Valid Enrollment Fee adds further pressure to actively promote the loyalty program. Franchisees should aim to optimize their participation in the Wyndham Rewards program to maximize benefits and minimize these additional costs. Understanding the specific metrics and requirements outlined in the Front Desk Guide is crucial for managing these fees effectively.