For a Hawthorn Suites By Wyndham franchise, when is the balance of the initial fee due?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| Application, | ||||
|---|---|---|---|---|
| Initial Fee (inclusive | balance due at | |||
| $40,000 | $40,000 | Lump Sum | Us | |
| of Application Fee) 1 | signing of |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–51)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the balance of the initial franchise fee is due upon signing the Franchise Agreement. The initial fee, which ranges from $40,000, is paid as a lump sum at this time.
This means that a prospective Hawthorn Suites By Wyndham franchisee must have the full initial fee amount available when they are ready to finalize the franchise agreement. This is a standard practice in franchising, as it secures the franchisee's commitment and provides the franchisor with capital to begin the onboarding process.
It is important to note that this fee is generally non-refundable, as stated elsewhere in the FDD. Therefore, prospective franchisees should conduct thorough due diligence before signing the agreement and paying the balance. Item 5 of the FDD may provide additional details on the initial fee and any potential deferral options, and Item 10 discusses possible financing options.