What is the 'Facility' referenced in the Three-Party Agreement for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Three-Party Agreement (the "Agreement") is made and entered into as of, 20 by |
|---|
| and among |
| ("Lender"); |
| ("Franchisee"); and |
| ("Franchisor" or "Company"). |
| Lender, Franchisee, and Franchisor each are referred to as a "Party" and collectively are referred to as the |
| "Parties." |
| RECITALS |
| A. |
| The Franchise Agreement. Franchisee and Franchisor entered into that certain franchise, |
| license or membership agreement, dated, 20 |
| (the "Franchise Agreement"), related to a |
| guest lodging facility located at, designated as Unit # |
| (the "Facility"). The Franchise |
| Agreement and certain ancillary agreements related to the Franchise Agreement collectively are referred to |
| as the "Primary Agreements." Pursuant to the Primary Agreements, Franchisee operates the Facility as a |
| ® franchised location. Capitalized terms used and not defined in this Agreement shall have the |
| meanings given to them in |
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the 'Facility' in the context of the Three-Party Agreement refers to the specific guest lodging location that is subject to the franchise agreement. The Three-Party Agreement involves the Lender, Franchisee, and Franchisor, and it outlines their respective rights and responsibilities concerning the franchised Hawthorn Suites By Wyndham property. The agreement is tied to a specific location, identified by its address and unit number. This definition ensures that all parties are clear about which physical property the agreement pertains to.
For a prospective Hawthorn Suites By Wyndham franchisee, this definition is crucial because it establishes the physical asset to which the franchise agreement is legally bound. The franchisee's rights and obligations under the franchise agreement are directly linked to the operation of the guest lodging facility at the specified location. Any changes to the location or transfer of the franchise would need to comply with the terms outlined in the agreement, particularly concerning the Facility.
The Three-Party Agreement ensures that the lender, who is providing financing for the Hawthorn Suites By Wyndham property, has a clear understanding of the franchise agreement and its implications for the property's operation. The agreement helps protect the lender's investment by aligning the interests of the franchisee and franchisor in maintaining the standards and performance of the Facility. This alignment is essential for the long-term success and stability of the franchised Hawthorn Suites By Wyndham location.
Schedule A of the franchise agreement provides a legal description of the Facility. Schedule B includes the Hawthorn Facility number of approved Suites. These schedules further clarify the scope and specifics of the Facility covered by the Three-Party Agreement, leaving no ambiguity about the physical property and its operational parameters.