Does the Hawthorn Suites By Wyndham agreement allow for class action lawsuits?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.6.5 Any judicial proceeding directly or indirectly arising from or relating to this Agreement shall be considered unique as to its facts and may not be brought as a class action.
You and each of the owners of your Equity Interests waive any right to proceed against us by way of class action.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 78–83)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, franchisees are prohibited from participating in class action lawsuits against the company. The franchise agreement explicitly states that any legal proceedings arising from the agreement will be considered unique and cannot be brought as a class action. Furthermore, franchisees and owners of equity interests in the franchise waive their rights to proceed against Hawthorn Suites By Wyndham through class action lawsuits.
This waiver means that a franchisee cannot join with other franchisees to sue Hawthorn Suites By Wyndham as a group. Each franchisee must pursue any legal claims individually. This is a common practice in franchising, as it limits the franchisor's exposure to large, multi-claimant lawsuits.
The franchisee acknowledges that they have read the FDD and have independently evaluated the risks of investing in a Hawthorn Suites By Wyndham franchise. They also acknowledge that they are not relying on any representations or promises not written in the agreement or the FDD. This further reinforces the individual nature of the agreement and the franchisee's responsibility to conduct their own due diligence.