On what date was the Guaranty of Performance executed for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, WYNDHAM HOTELS & RESORTS, INC. has, by a duly authorized officer, executed this Guaranty of Performance in Parsippany, New Jersey as of the 31st day of March 2025.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the Guaranty of Performance was executed on March 31, 2025. This guarantee is provided by Wyndham Hotels & Resorts, Inc., the parent company, ensuring that Hawthorn Suites Franchising, Inc. will fulfill its obligations under the franchise agreements. This guarantee remains in effect until all obligations of Hawthorn Suites Franchising, Inc. are satisfied or their liability to franchisees is completely discharged.
Wyndham Hotels & Resorts, Inc. promises to uphold the terms and conditions of the franchise agreements, including any amendments, modifications, renewals, or extensions. This commitment provides a level of financial security and assurance to franchisees, knowing that the parent company stands behind the franchisor's obligations. The document specifies that Wyndham Hotels & Resorts, Inc. will not be released from liability as long as any claim by a franchisee against Hawthorn Suites Franchising, Inc. is outstanding.
The Guaranty of Performance is a standard practice in franchising, where a parent company or a financially stable entity guarantees the obligations of a subsidiary franchisor. This arrangement mitigates the risk for franchisees, especially when the franchisor is a newly formed entity or has limited operating history. The inclusion of such a guarantee can be a significant factor for prospective franchisees in evaluating the financial stability and commitment of the franchise system.
The document also states that notice of acceptance of the guarantee is waived, but notice of default on the part of Hawthorn Suites Franchising, Inc. is not waived. This means that Wyndham Hotels & Resorts, Inc. does not need to be notified that their guarantee is accepted, but they must be informed if Hawthorn Suites Franchising, Inc. fails to meet its obligations. This Guaranty is binding upon Wyndham Hotels & Resorts, Inc., its successors, and assigns, ensuring long-term accountability.