Can Hawthorn Suites By Wyndham assign the agreement without the franchisee's consent?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.14 Successors and Assigns. You agree that we may assign this Agreement or any of our rights and obligations hereunder without your consent.This Agreement shall inure to the benefit of and be binding upon the Parties, their successors and permitted assigns.
Notwithstanding the above, you may not assign this Agreement or any of your rights or obligations hereunder without our express written consent.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, Hawthorn Suites By Wyndham can assign the franchise agreement or any of its rights and obligations without the franchisee's consent. However, the franchisee is not allowed to assign the agreement or any of their rights or obligations without the express written consent of Hawthorn Suites By Wyndham.
This clause means that Hawthorn Suites By Wyndham has the flexibility to transfer the agreement to another party, which could be another company or entity, without needing the franchisee's approval. This is a standard practice in franchising, as it allows the franchisor to restructure its business or transfer its rights to a more suitable entity. However, it also means that a franchisee could find themselves dealing with a completely different franchisor during the term of their agreement.
Conversely, the franchisee is restricted from transferring their rights and obligations without Hawthorn Suites By Wyndham's explicit written consent. This protects Hawthorn Suites By Wyndham's interests by ensuring that any new franchisee meets their standards and is capable of fulfilling the obligations of the franchise agreement. This provision is typical in franchise agreements to maintain brand consistency and operational standards.
This asymmetry in assignment rights is a significant point for potential franchisees to consider. While Hawthorn Suites By Wyndham retains the freedom to transfer the agreement, the franchisee's ability to do so is heavily restricted, requiring express written consent. Franchisees should carefully evaluate this provision and understand the potential implications of dealing with a new franchisor during the term of their agreement.