What conditions must be met before the Development Incentive is disbursed by Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Incentive will be disbursed after (i) you have passed a final credit review with no material adverse changes in your business, legal, litigation, bankruptcy status or finances, or of your guarantors or the Facility since preliminary approval, (ii) the Facility officially opens with our consent, (iii) you have completed all required pre-opening improvements specified in the Franchise Agreement; (iv) you have paid the Initial Fee; (v) you are in good standing under the Franchise Agreement and all ancillary agreements; and (vi) you have completed any other pre-requisites for disbursement that you and we agree to in the Franchise Agreement. Additionally, we may require you to use the services of an approved procurement service provider, or purchase directly from a manufacturer or approved supplier, as outlined below.
Source: Item 10 — FINANCING (FDD pages 58–60)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, several conditions must be met before the Development Incentive is disbursed. The franchisee must pass a final credit review with no material adverse changes to their business, legal, litigation, bankruptcy status, or finances, as well as those of their guarantors or the Facility since preliminary approval. The Hawthorn Suites By Wyndham Facility must officially open with the company's consent. The franchisee must complete all required pre-opening improvements specified in the Franchise Agreement and have paid the Initial Fee.
Additionally, the franchisee must be in good standing under the Franchise Agreement and all ancillary agreements. Any other pre-requisites for disbursement that the franchisee and Hawthorn Suites By Wyndham agree to in the Franchise Agreement must also be completed. These prerequisites ensure that the franchisee is financially stable, has met all initial obligations, and is operating in compliance with the franchise agreement before receiving the incentive.
Hawthorn Suites By Wyndham may also require the franchisee to use the services of an approved procurement service provider or purchase directly from a manufacturer or approved supplier. Meeting these conditions is essential for franchisees to access the Development Incentive, which can provide crucial financial support for new construction and conversion Chain Facilities.
It is important to note that the Development Incentive program may be modified, limited, extended, or terminated at any time without advance notice or amendment to the Franchise Disclosure Document. This means that the conditions for disbursement could change, and prospective franchisees should confirm the current requirements with Hawthorn Suites By Wyndham before making any financial commitments.