What fees must a Hawthorn Suites By Wyndham franchisee pay in the event of a Condemnation?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Condemnation Payments. In the event a Condemnation is to occur, you will pay us the fees set forth in Section 7 for a period of one year after we receive the initial notice of condemnation
described in Section 11.3.2, or until the Condemnation occurs, whichever is longer (the "Notice Period"). You will pay us Liquidated Damages equal to the average daily Royalties and Marketing/Reservation Contributions for the one-year period preceding the date of your condemnation notice to us multiplied by 365 less the number of days in the Notice Period. This payment will be made within 30 days after Condemnation is completed (when you close the Facility or you deliver it to the condemning authority). You will pay no Liquidated Damages if the Condemnation is completed after the Notice Period expires. For the sake of clarity, you must continue to pay when due the fees, set forth in this Agreement, including under Section 7, and all other agreements with us or our affiliates pertaining to the Facility until Condemnation is completed.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 78–83)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, in the event of a condemnation, a franchisee is obligated to pay specific fees. For one year after Hawthorn Suites By Wyndham receives the initial notice of condemnation, the franchisee must continue to pay the fees outlined in Section 7 of the agreement.
Additionally, the franchisee will pay Liquidated Damages. These damages are calculated by multiplying the average daily Royalties and Marketing/Reservation Contributions for the one-year period preceding the condemnation notice by 365, and then subtracting the number of days in the Notice Period. This payment is due within 30 days after the Condemnation is completed, which is defined as when the franchisee closes the Facility or delivers it to the condemning authority. However, no Liquidated Damages are due if the Condemnation is completed after the Notice Period expires.
It is important to note that the franchisee must continue to pay all fees, including those under Section 7, and all other agreements with Hawthorn Suites By Wyndham or its affiliates pertaining to the Facility until Condemnation is completed. The Notice Period extends until the date the franchisee ceases operating the Facility as described in Section 11.3.2, or until the Condemnation occurs, whichever is longer.