How is the amount for Facility Improvement costs calculated for Hawthorn Suites By Wyndham?

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the Facility Improvement costs are calculated differently depending on whether you are improving an existing facility or constructing a new one. For facility improvements, the amount is calculated as 5% of the Facility Improvement costs. The low end of the range assumes the facility is in excellent condition and needs no architectural, design, or engineering work. The high end assumes a comprehensive renovation, including permit fees, utility deposits, environmental studies, and architectural and engineering fees to adapt prototypical plans to local codes. These costs do not include impact fees, site evaluation fees, geotechnical report fees, or civil engineering fees, which can vary widely by location.

For new construction, the amount is calculated as 5% of Facility Construction costs. This range includes general construction, minimal site work, and landscaping. The cost of construction can vary significantly based on location, construction type, material costs, labor costs, and local code requirements.

Prospective Hawthorn Suites By Wyndham franchisees should carefully assess the condition of any existing facility or the specific requirements for new construction in their chosen location to estimate these costs accurately. It is crucial to consult with local authorities to determine potential impact fees and other location-specific expenses not included in the initial estimates.