Are the fees paid to Hawthorn Suites By Wyndham generally refundable?

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the fees paid directly to Hawthorn Suites By Wyndham are generally non-refundable. Specifically, the FDD states that none of the fees and costs payable to Hawthorn Suites By Wyndham, as listed in the initial investment table, are refundable.

However, fees and costs payable to suppliers and other third parties are generally not refundable unless a franchisee negotiates a refund agreement directly with those third parties. This means that while Hawthorn Suites By Wyndham itself does not offer refunds on fees paid to them, there might be a possibility of getting a refund from third-party suppliers if the franchisee makes specific arrangements with them.

This policy has significant implications for prospective franchisees. It highlights the importance of carefully considering all investment costs and obligations before signing the franchise agreement, as the initial fees paid to Hawthorn Suites By Wyndham will likely not be recoverable. It also emphasizes the need for franchisees to conduct thorough due diligence on third-party suppliers and negotiate favorable terms, including potential refund options, to mitigate financial risks.

In the franchise industry, non-refundable fees are a common practice, as these fees often cover the franchisor's initial costs of setting up the franchise and providing initial training and support. However, the ability to negotiate terms with third-party suppliers can offer some flexibility and potential for cost recovery, provided the franchisee takes proactive steps to secure such agreements.