What agreements are covered by the performance guaranty for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, WYNDHAM HOTELS & RESORTS, INC., a Delaware corporation, located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, absolutely and unconditionally guarantees the performance by its indirect subsidiary, HAWTHORN SUITES FRANCHISING, INC., a Georgia corporation, with its registered office located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, as franchisor, of all its obligations in accordance with the terms and conditions of its franchise or license agreements and other agreements issued pursuant to the Hawthorn Franchise Disclosure Document and entered into from and after the date hereof as such franchise, license and other agreements shall have been or may hereafter be amended, modified, renewed or extended from time to time. This Guaranty shall continue in force until all such obligations of HAWTHORN SUITES FRANCHISING, INC. shall have been satisfied or until such liability of HAWTHORN SUITES FRANCHISING, INC. to such franchisees or licensees has been completely discharged, whichever first occur. WYNDHAM HOTELS & RESORTS, INC. shall not be discharged from liability hereunder as long as any such claim by a franchisee or licensee against HAWTHORN SUITES FRANCHISING, INC. remains outstanding. Notice of acceptance is waived. Notice of default on the part of HAWTHORN SUITES FRANCHISING, INC. is not waived. This Guaranty shall be binding upon WYNDHAM HOTELS & RESORTS, INC., its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, the performance guaranty provided by Wyndham Hotels & Resorts, Inc. covers all obligations of Hawthorn Suites Franchising, Inc. as the franchisor. This guaranty extends to the terms and conditions outlined in the franchise or license agreements, as well as other agreements issued under the Hawthorn Franchise Disclosure Document. The agreements covered are those entered into from and after March 31, 2025.
This guaranty remains in effect until all obligations of Hawthorn Suites Franchising, Inc. are fulfilled or until their liability to franchisees or licensees is completely discharged. Wyndham Hotels & Resorts, Inc. will not be released from liability as long as any claim by a franchisee or licensee against Hawthorn Suites Franchising, Inc. is outstanding.
In practical terms, this means that Wyndham Hotels & Resorts, Inc. is ensuring that Hawthorn Suites Franchising, Inc. will meet its commitments to franchisees. If Hawthorn Suites Franchising, Inc. fails to uphold its end of the agreements, Wyndham Hotels & Resorts, Inc. is obligated to step in and fulfill those responsibilities. This provides a level of security for franchisees, knowing that the parent company stands behind the franchise system's obligations.