What constitutes 'Condemnation' of a Hawthorn Suites By Wyndham facility?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
Condemnation means the taking of the Facility for public use by a government or public agency legally authorized to do so, permanently or temporarily, or the taking of such a substantial portion of the Facility that continued operation in accordance with the System Standards, or with adequate parking facilities, is commercially impractical, or if the Facility or a substantial portion is sold to the condemning authority in lieu of condemnation.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, 'Condemnation' refers to specific scenarios where the hotel property is taken over by a government or public agency. This includes both permanent and temporary takings.
Specifically, condemnation occurs when a government or public agency, legally authorized to do so, takes the Hawthorn Suites By Wyndham facility for public use. This also applies if a substantial portion of the facility is taken, making it commercially impractical to continue operating according to Hawthorn Suites By Wyndham's System Standards or without adequate parking.
Furthermore, if the Hawthorn Suites By Wyndham franchisee sells the facility, or a significant part of it, to the condemning authority as an alternative to formal condemnation proceedings, this is also considered condemnation under the franchise agreement. This definition is important for franchisees as it can trigger certain provisions within the franchise agreement related to termination, compensation, and other obligations.