Does the Hawthorn Suites By Wyndham agreement provide benefits to third parties?

According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, the franchise agreement is exclusively for the benefit of the parties involved, meaning the franchisee and Hawthorn Suites By Wyndham. The agreement explicitly states that there are no third-party beneficiaries and that no agreement between Hawthorn Suites By Wyndham and anyone else is for the franchisee's benefit. This is a fairly standard clause in franchise agreements, intended to limit liability and prevent outside parties from claiming rights or benefits under the agreement.

However, the agreement does require franchisees to name Hawthorn Suites Franchising, Inc.; U.S. Franchise Systems, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and their current and former subsidiaries, affiliates, successors, and assigns as additional insureds on their liability insurance policies. While this doesn't directly confer a benefit in the traditional sense, it does provide an added layer of protection to these entities, ensuring they are covered by the franchisee's insurance.

Furthermore, franchisees must honor reservations and commitments to guests and travel industry participants, and participate in mandatory Internet and distribution marketing activities and programs, including arrangements with third-party distribution channels. While these stipulations are primarily for maintaining brand standards and ensuring customer satisfaction, they also indirectly benefit third-party vendors and customers who interact with the Hawthorn Suites By Wyndham system. Franchisees must also use suppliers approved by Hawthorn Suites By Wyndham for certain goods and services, which could be seen as an indirect benefit to those suppliers.