How does the Hawthorn Suites By Wyndham Franchise Agreement define the 'Chain'?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
Loyalty Program Charge means the fee you pay us under Section 3.4.4 and Schedule C for a frequent guest rewards program or other special marketing programs that we may create or undertake and require participation by Chain Facilities.
Maintenance Standards means the standards specified from time to time in the System Standards Manual for repair, refurbishment and replacement of FF&E, finishes, decor, and other capital items and design materials in Chain Facilities.
Marketing Fund means the fund to which the Chain Facilities' Marketing/Reservation Contributions are credited.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the term 'Chain' is used in conjunction with other defined terms, but is not explicitly defined on its own. Instead, the FDD uses the term 'Chain Facilities' within the definitions of other terms.
For example, the Loyalty Program Charge is related to participation in the Wyndham Rewards program, where the charge applies to amounts on which members earn points at the 'Facility' as defined in the Front Desk Guide, and participation is required by 'Chain Facilities'. Similarly, Maintenance Standards are specified in the System Standards Manual for the repair, refurbishment, and replacement of items in 'Chain Facilities'. The Marketing Fund is the fund to which the 'Chain Facilities' Marketing/Reservation Contributions are credited.
Prospective franchisees should note that while the term 'Chain' is not directly defined, its usage within these definitions implies that it refers to all Hawthorn Suites By Wyndham locations operating under the franchise system. Understanding how the term 'Chain Facilities' is used in the context of fees, standards, and contributions is crucial for franchisees to grasp their financial and operational obligations.
To gain a clearer understanding, a prospective franchisee should ask the franchisor for a comprehensive definition of 'Chain' and 'Chain Facilities' and how these terms apply to their specific obligations and benefits under the Franchise Agreement. This will help clarify the scope and applicability of various standards, fees, and programs within the Hawthorn Suites By Wyndham franchise system.